Frost & Sullivan - Increasing Consumer Awareness and Test Accuracy Fuel Growth In Home Diagnostics Market
Monday January 18, 8:03 am Eastern Time
Company Press Release
SOURCE: Frost & Sullivan
MOUNTAIN VIEW, Calif., Jan. 18 /PRNewswire/ -- Early detection of disease can be the difference between effective treatment and costly hospital stays. With these issues in mind, educated healthcare consumers are increasingly turning to healthcare products which can be used privately and conveniently in their own homes. The most significant areas for growth in the home diagnostics market will undoubtedly be in the home blood-glucose monitoring and drugs of abuse devices markets.
A new strategic Market Engineering study by Frost & Sullivan (www.frost.com), U.S. Home Diagnostics and Monitoring Device Markets, addresses the market as a whole, and gives manufacturers a view of the future market and technology trends. In 1998, the total U.S. home diagnostics and monitoring device market was valued at approximately $1.9 billion with a revenue growth rate of just below 12 percent. For this study, Frost & Sullivan analyzes the market for those home diagnostic and monitoring devices which are available to consumers over the counter (OTC) in retail outlets for home testing or diagnosis of various diseases or conditions.
Lack of reimbursement is the major threat to the U.S. home diagnostics and monitoring devices market. Except for some diabetes monitoring that is reimbursed by Medicare and some private healthcare providers, there is currently no reimbursement for these over the counter tests. This places a financial burden on patients who may prefer to visit their physician's office where tests performed are reimbursed. In addition, organizations such as Planned Parenthood offer their services to young women at very little or no cost for the purposes of diagnosing a possible pregnancy. Needless to say, manufacturers are hoping for quick changes in reimbursement policies for their products.
While double-digit growth is projected for the home blood-glucose monitoring and drugs of abuse markets, other segments are expected to increase at levels below 10 percent throughout the forecast period 1994-2004. ''Although cardiovascular disease remains the number one killer in the U.S., home blood pressure devices and cholesterol tests are not expected to show strong growth rates in the next few years,'' states Frost & Sullivan healthcare analyst, Celine Bernard. ''This trend is mainly due to a lack of population education on the devices as well as the disease, and a need for a large part of the population to be monitored by medical professionals in a clinical environment, rather than at home alone.''
Conversely, target populations are expanding, and prices are decreasing due to rebates and discounts in the market for home blood glucose monitoring products. These influences are having a profound impact on a market which accounted for more than 73 percent of the total U.S. home diagnostics and testing products revenues. According to Frost & Sullivan Medical Device Industry Analyst, Nandini Pal, ''Increasing health awareness and spiraling healthcare costs are inspiring early diagnosis of disease. As a more aware U.S. population looks to gain control over personal health, manufacturers, the government, and the public are moving toward home diagnostics and testing.'' Pal continues, ''The home diagnostics and monitoring market is seeing unprecedented growth which is expected to double revenues for the market in the next five years.''
The companies participating in this market include: A&D Medical, Abbott Laboratories [NYSE:ABT - news], Ameritek, Bayer Corporation, Becton Dickinson, Braun Thermoscan, Can-Am Care Corporation, Carter-Wallace, Inc., Cascade Medical, ChemTrak, Inc., Direct Access Diagnostics, Faichney Medical Products, Florida Medical Industries, Inc., FTS Associates, Inc., Graham-Field Health Products, Inc., HemoCue, Home Access Health Corp., Home Diagnostics, Inc., LifeScan, Inc., London International US Holdings, Inc., MediSense, Inc., Omron Healthcare, Inc., Personal Health and Hygiene, Inc., PolyMedica Healthcare, Inc., Popper & Sons, Inc., Princeton Biomeditech Corporation, Propper Manufacturing Company, Inc., Psychemedics Corporation [AMEX:PMD - news], Quidel Corporation [Nasdaq:QDEL - news], Roche Diagnostics Boehringer-Mannheim, Selfcare, Inc., Steridyne Corporation, Sunbeam-Corp., Syntron Bioresearch, Inc., Technical Chemicals and Products, Inc., The First Years, Inc., The Lumiscope Company, Inc., Unipath Diagnostics Co. Related companies include: A&D Company, Ltd., Affiliated Genetics, Inc., Amira Medical, Biocontrol Technology, Inc., Biomerica, Inc., BioScan Screening Systems, Inc., Biosys, Biotronics Technology, Inc., Boston Advanced Technologies, Carter-Wallace, Inc., Cholestech Corporation [Nasdaq:CTEC - news], Cygnus, Inc., Diagnostic Products Corporation [NYSE:DP - news], DIPRO Diagnostic Products, Eli Lilly & Company, Epitope, Inc., Helena Laboratories, Inc., HemeLab, Inc., HomePharmacy, Integ Incorporated [Nasdaq:NTEG - news], Johnson & Johnson, LXN Corporation, Mark of Fitness, Inc., MiniMed, Inc., PolyMedica Corporation, Rio Grande Medical Technologies, S.A.A.T. Ltd., SmithKline Diagnostics, Inc., SpectRx, Tandy Corp [NYSE:TAN - news]./Consumer Merchandise
This medical device industry research has integrated the Market Engineering consulting philosophy into the entire research process. Critical phases of this research included: Identification of industry challenges, market engineering measurements, strategic recommendations, planning and market monitoring. All of the vital elements of this system help the market participants navigate successfully through the medical device market. Frost & Sullivan is an international marketing consulting and training company that monitors the healthcare industry for market trends, market measurements, and strategies. This ongoing research is utilized to update a series of research publications such as #5520-53 U.S. Clinical Chemistry and Immunoassay Chemical Reagent Markets, and to support industry participants with customized consulting needs.
Report: 5813 Publication Date: Nov. 1998 Price: $3,450
Visit the Frost & Sullivan Web site: frost.com
SOURCE: Frost & Sullivan
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