GLUCOSE MONITORING DEVICES

GLUCOSE MONITORING DEVICES

Introduction – Diabetes & Devices:

Diabetes is a group of metabolic disorders in which there are high blood sugar levels over a prolonged period. Diabetes mellitus (DM) commonly known as diabetes. It can cause various complexities if it is left untreated. Common symptoms of diabetes are increased appetite; increased thirst and high blood sugar include frequent urination.

Devices:

A blood glucose meter is an electronic device calibrating the blood glucose level. Comparatively a small drop of blood is disposed in the test strip, within a few seconds the device shows the result of blood glucose level in the body. This small device is quite useful and as well cost-effective too.

Three main types of Diabetes Mellitus:

  1. Under 30 years of age:

    • Costly diagnose
    • Severe health conditions
    • Few or no insurers
  2. Under 40 years of age:

    • Aboriginal, Hispanics, Asians, African more prone
    • Several monitoring devices
    • Insurance policies available
  3. Gestational (Females Only):

    • 2-10% females during pregnancy
    • Pose risk of type 2 to mother and child in future

Top 10 countries for numbers of people aged 20-79 years with diabetes in 2011E and 2030P

Glucose Monitoring Devices business growth expectation 2013: $548 billion & 2030: $627 billion (14% growth) 

Types of Glucose Monitoring Devices Available:

Blood Glucose Monitoring Devices:-

  • Testing strips: US major market: 2c-$2
  • Self-monitoring devices: China has maximum users: $10-$50
  • Continuous monitoring devices
  • Lancets

Promoters:

These are the factors that help in promoting and advertising to create and spread awareness of the product and the particular sort of device in which the organisation is involved.

  • Ageing population
  • Growing research on diabetes
  • Rising obesity
  • Industrialisation
  • Urbanisation

 Inhibitors:

Some elements are the stopple in the growth of the Glucose Monitoring Devices. It restrains the extension of the usage and delivers some fake rumours in the market, in the defamation of the particular product. Following are some reasons that inhibit Glucose Monitoring Devices:

  • High cost of devices
  • Poor reimbursements
  • Alternate treatments
  • Lack of awareness

Major Player of the Glucose Monitoring Devices:

The global market for Blood Glucose Monitoring Devices is tended to be increased with a rapid growth of US $12 billion by 2020.

Global Trends & Segmentation of the Glucose Monitoring Devices:

The United States is the largest market player worldwide. In terms of the diabetics’ population, China and India are the leading countries. Asia-Pacific is the most developing market with CAGR of 9.1%, according to a report.

The market segmentation of Glucose Monitoring Devices:

 

Global Trends:

  • 40% of the market is driven by North America followed by Europe and Asia Pacific.
  • China and India are the lowest markets of penetration in Glucose Monitoring Devices.
  • In 2013, the market of Glucose Monitoring Devices increased by 50% in comparison to 2007.
  • The CAGR 9.1% increased in the market currently relatively in comparison of 2015.
  • Japan, Korea, Taiwan and Brazil are highly insured population.

Top Three Market Players of Glucose Monitoring Device Industry:

Bayer HealthCare:

Since from 150 years, Bayer is a Life Science German based company, serving in health care and agriculture area. With their innovative products, they are contributing to finding solutions to some of the major challenges of modern time.

  • Its revenue is 2360 million Euros.
  • Annual Report Highlights:
  • Positive response from emerging markets
  • Slow market in US and Europe: reimbursement pressures and price decreases
  • Types of Products:
  • USB glucose monitors
  • Testing strips
  • Market Segments
  • North Africa, Africa, Asia, Europe, Latin America, Middle East, North America.

LIFESCAN:

LifeScan is a US based company, corely dedicated to improving life and unwavering commitment towards diabetes. LifeScan is creating awareness for almost two decades against diabetes, teaching people about diabetes and their families about the complications of diabetes can be reduced with proper diabetes management.

  • Its revenue is $2.5 billion.
  • One touch ultra meter launched in Japan in 2010 and very popular now
  • Customised for Asian markets
  • Smart monitors such as Ultra Touch Veiro majorly launched in Europe, Netherlands, Australia.

ACCU-CHECK  ROCHE:

Roche AG is a Switzerland based multinational healthcare company from 1896, worldwide operating two divisions: Pharmaceuticals and Diagnostics.

  • Its revenue is 29% with strong R&D.
  • The rise of emerging markets in healthcare spending (in Billion US $s)
  • Annual Reports Highlights:
  • Challenges in major markets of USA
  • Sales increased in EMEA, Asia Pacific and Latin America
  • Reimbursement pressures in the USA
  • High competition in Japan, price cuts
  • Accu-check major product, smart products are available.

Competition Analysis:

Roche AG is the biggest player in the market since 1896 to till now as we can see it in graph also. Roche is the leading brand in all the market of the countries. In the graph, Africa, Europe and South East Asia is clearly its market and no other company going to chase its market in coming 2 to 4 years. Whereas, North East and Western Pacific region, here, a tough competence between both Roche and Bayer. While if we see the South and Central America they all three are competing and if we have a look at North America’s region then LifeScan is the leading brand. And it has also covered various other regions where we can see Lifescan’s growth like Europe, South and Central America. Whereas in Africa, Middle East & North America and South East Asia it is starting with these areas.

Bayer is overall at 2nd position, according to the graph, in the Middle East & North America, Europe, South & Central America and Western Pacific region it has covered the market and has a tough competition with Roche.

Market Penetration Company Wise

Opportunities in the Different Market:

Diabetes Mellitus Population among ages 20-79, 2014E and 2035P

  • Biggest Market: Western Asia Pacific
  • Maximum Growth Market: EMME and Africa

 Points to be noted from the above graph:

  • High growth markets are optimal for introducing cheaper and easily accessible devices.
  • The market of Western Asia Pacific needs more attention since there is already a high prevalence of diabetes in the region, so many players must be already working there. If a new device has to be launched, it requires :
    • Better characteristics in comparison to already existing ones.
    • Options: Smart devices, Cheaper devices, Easy to use

Deciding Factors:

  • Diabetic population in near future and its growth rate
  • Diabetes prevalence
  • Cost of product
  • Cost coverage and reimbursements
  • Expenditure done by diabetic person on an average

Diabetic population Prevalence:


Diabetic Population Prevalence

Reasons:

  • Large rural population
  • High-risk ethnicity
  • Younger age onset
  • Lower BMI risk threshold level

Opportunity in South East Asia:

Since most South East Asian countries are middle income or low-income countries, thus they have a big market of cheaper monitoring devices such as test strips.

Thus, launching a product like test strips and glucose self-monitoring devices which are cheap and easily accessible for the rural population can make a mark.

Reasons Why People with Diabetes do not Practice Self-monitoring of Blood Glucose:

  • Lack of Supplies: A survey was conducted, in which the reason came out was the lack of supply. They said that they could not get it into the market regularly, due to which they could not do it themselves.
  • No interest: It’s not so simple and manageable if the people do not know about the using of the kit. Whereas the person thinks to avoid it rather than doing it self and take interest. 28% population do not take interest in this Glucose Monitoring Devices. May not be clinically beneficial or cost effective and may reduce the quality of life.
  • Lack of Awareness: There are various methods of self-monitoring and different ways to perform the test of each type of diabetic test, where the person lacks the various details. So 35% of the population is lacking in awareness.
  • Cost of Testing Supplies: 58% reason is the cost factor. It exacts lots of extra charges for shipping and delivery. Its supply is too costly to afford. It cost a way too extra from hospitals test. Therefore, people avoid the use of self-monitoring Glucose Devices to conserve the extra expense of self-monitoring devices.

Cost Coverage by Government and Expenses are Taken by Patients in Each Market Segment:

MARKET SEGMENT

Diabetes Expenditure/ Diabetic Person (USD)

AFRICA (17)

202

EUROPE (24)

2615

MIDDLE EAST & NORTH AMERICA (11)

393

NORTH AMERICA (16)

7169

SOUTH & CENTRAL AMERICA (15)

1087

SOUTH EAST ASIA (6)

83

WESTERN PACIFIC ASIA (15)

640

North American government is spending US $ 7169/ person diabetic disease expenditure. It’s spending is a way more than any other government globally. The nation is highly developed and superabundant with all the technologies, they easily providing all the necessary things and remedial to its citizen quickly.

The situation is vice-versa with South East Asian countries. South East Asian consist of China, India, Nepal, Bangladesh, Pakistan, Malaysia, Bhutan, Sri Lanka, and many other all are developing nations. The main reason for the minimum expense of the govt. is the nation is developing and do not expend much on such expense like test strips, glucose monitoring devices and such products, helpful in diabetic treatment. The expense of the govt. is US $ 83 per person which is relatively low globally. The citizen of the South East Asian countries themselves hoisting their expenses, which is too costly to bear.

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