Asia Pacific Overall Healthcare Outlook 2010

37
2010 Asia Pacific Healthcare Outlook Analysis of Best Opportunities P3B5-54 April 2010

Transcript of Asia Pacific Overall Healthcare Outlook 2010

2010 Asia Pacific Healthcare Outlook

Analysis of Best Opportunities

P3B5-54

April 2010

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TABLE OF CONTENT

1. Overview of Healthcare Market : Key Takeaways

• Setting the Scene: Outlook for Healthcare Industry from 2010-12

• Global vs. APAC: The New Frontier

2. In-depth Sectoral Analysis, APAC and S Korea

• APAC Pharmaceuticals & Biotechnology Market

• APAC Medical Devices Market

• APAC Clinical Diagnostics Market

• APAC Lifesciences and Health IT Market

• APAC Medical Imaging Market

3. Summary : Best Opportunity Analysis, APAC

• Where to place your bets in APAC: 2010- 2012

4. Decision Support Database

• Total Health Expenditure

• Private Health Expenditure

• Government Health Expenditure

• Percent Healthcare Expenditure in GDP

• Population Aged Above 65

5. About Frost & Sullivan

5

Overview of Healthcare Market : Key Takeaways

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Setting the Scene Outlook for Healthcare Industry from 2010-12

Source: Frost & Sullivan

Global Healthcare Market : 2009

• US and Europe were impacted in a major way by global crisis

• Asia also slowed down but not as much as the West

• Valuations were low and M&A was high, many smaller Biotech companies struggled

• Major organizational restructuring occurred, along with portfolios being reassessed

Global Healthcare Market : 2010-12

• Recovery of the markets to a large extent with strong growth in Asia

• Start of major patent expiries

• M&A activity down in the West but could be important in Asia, restructuring will continue

• Asia becoming increasingly important as a market and outsourcing hub

• 5Ps to drive market: Preventive, Preemptive, Personalized, Predictive, Personal Responsibility

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Global vs. APAC: The New FrontierBy 2012 APAC expected to be close to 27% of global market

247 277 311 348

815 880 906 934

0

200

400

600

800

1000

1200

1400

1600

1800

2009 2010 2011 2012

10621157

12181282

23.9%23.9%

27.2%27.2%

23.2%23.2%

26.4%26.4%

CAGR12.2%CAGR12.2%

CAGR6.47%CAGR6.47%

Global & APAC Healthcare Revenues US$ Bn, 2009-2012

• By 2015 APAC could represent ~40% of global market!

Rest of the World

APAC

Note: All figures are rounded; the base year is 2009. Source: Frost and SullivanNote: All figures are rounded; the base year is 2009. Source: Frost and Sullivan

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Asia is however transitioningMoving toward a Multi–Polar World Order

Asia Pacific Market : 2009

• Slowing down of GDP in mature markets – Japan and Australia took a big hit

• Global consolidation left a difficult mess for integration on a local level – job losses and portfolio realignment

• Price cutting and playing the margins game

• The bubble burst for Medical Tourism

• Asia started to set up infrastructure for offshoring and outsourcing for US/EU companies

Asia Pacific Market : 2012

• A shift in the center of the world economically and strategically to Asia

• Asia to move from export led development to consumption led growth

• APAC the fastest growing pharma market and API production hub

• Increased government attention to primary and community based healthcare.

• Focus on building infrastructure and education: government role will be higher

• Increased use of mobile technology in healthcare service delivery

Source: Frost & Sullivan

9

In-depth Sectoral Analysis, APAC

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APAC Pharmaceuticals & Biotechnology MarketEarlier diagnosis improves disease management and length of therapy

Note: All figures are rounded; the base year is 2009. Source: Frost and SullivanNote: All figures are rounded; the base year is 2009. Source: Frost and Sullivan

Market Drivers

Market Restraints

Long term use of multiple and specialized drugs for the ageing population

Government support for generics and biosimilars

Enhanced diagnosis and management in oncology, cardiovascular, pain etc

Unresolved political and regulations issues Quality concern of generics & counterfeits

Government tenders favour local manufacturers

180 203.5 230 260

570 621.5 636 649

0100200300400500600700800900

100011001200

2009 2010 2011 2012

Rest of the World

APAC

24.6% 28.5%

CAGR6.6 %

CAGR6.6 %

CAGR12.9 %CAGR12.9 %

Pharma & Biotech Revenues, US$ Bn, 2009-2012

APAC Share

750825 866 909

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APAC Medical Devices MarketTransition to a mindset of monitoring

Note: All figures are rounded; the base year is 2009. Source: Frost and SullivanNote: All figures are rounded; the base year is 2009. Source: Frost and Sullivan

46.5 51.3 56.5 62.3

156.5 163.7 171 178.4

0

50

100

150

200

250

300

350

2009 2010 2011 2012

Rest of the World

APAC

203 215 227.5 240.7

23.8%23.8%

25.8%25.8%

Market Drivers

Market Restraints

•Safety, accuracy, efficiency, cost

•Silver industry devices

•Convergence of devices and pharma products

•Regulatory and reimbursement hurdles

•Lack of sufficient distribution networks

•Inadequate training/certification for allied staff

Medical Devices Revenues, US$ Bn, 2009-2012

APAC Share

CAGR5.8%

CAGR5.8%

CAGR10.2%CAGR10.2%

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Note: All figures are rounded; the base year is 2009. Source: Frost and SullivanNote: All figures are rounded; the base year is 2009. Source: Frost and Sullivan

APAC Clinical Diagnostics Market Shift in business model from instrumentation to service revenues

6.9 7.3 7.8 8.5

31.7 33.6 35.6 37.5

0

10

20

30

40

50

60

2009 2010 2011 2012

Rest of the World

APAC

38.640.9

43.446

17.8%17.8%

18.5%18.5%

Market Drivers

Market Restraints

Lab automation

Home care monitoring

Emphasis on early detection

High cost of genomics and proteomics tests

Mutually exclusive target customers

Reimbursement issues

Clinical Diagnostics Revenues, US$ Bn, 2009-2012

APAC Share

CAGR7.3%

CAGR7.3%

CAGR6%

CAGR6%

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Note: All figures are rounded; the base year is 2009. Source: Frost and SullivanNote: All figures are rounded; the base year is 2009. Source: Frost and Sullivan

*Healthcare IT includes: Software, Hardware, IT services and Lifesciences IT

APAC Lifesciences and Health IT Market*Interoperability challenges hinder adoption

7.1 7.9 8.8 9.8

43.5 46.7 49.6 52.7

0

10

20

30

40

50

60

70

80

2009 2010 2011 2012

Rest of the World

APAC

14.5%14.5%

15.7%15.7%

Market Drivers

Market Restraints

Operational efficiency Strong and sustained demand for healthcare services

Consumer demand for quality and access to information

Interoperability

Integration

Lack of skilled resources

Lifesciences & Healthcare IT, US$ Bn, 2009-2012

CAGR7%

CAGR7%

CAGR11.3%CAGR11.3%

APAC Share

50.654.6

58.4 62.5

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APAC Medical Imaging MarketTurnkey projects drive double digit growth in Asia

Note: All figures are rounded; the base year is 2009. Source: Frost and SullivanNote: All figures are rounded; the base year is 2009. Source: Frost and Sullivan

6 6.8 7.7 8.6

13.8 14.2 14.6 15

0

5

10

15

20

25

30

35

40

2009 2010 2011 2012

Rest of the World

APAC

19.8 21 22.3 23.6

32.4%32.4%

36.4%36.4%

Market Drivers

Market Restraints

Rise in turnkey projects

Increasing corporate wellness programs

Integration of Imaging with information systems

New customer sets to be addressed

Price erosion

CAGR6%

CAGR6%

CAGR12.7%CAGR12.7%

Imaging Market Revenues, US$ Bn, 2009-2012

APAC Share

15

Summary : Best Opportunity Analysis APAC

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Where to place your bets in APAC: 2010- 2012

Time

Gro

wth Molecular

Diagnostics

Silver IndustryEquipment

POCT

Vaccines/Biologics

Endoscopy

EMR/EHR

WellnessProducts

Oncology

Value basedImaging

INNOVATIONTRIGGER

SUPERGROWTH

NORMALISATION LEADERSHIP

IndiaChina

S.Korea

SingaporeMalaysia

Vietnam

HealthcareServices

Source: Frost & Sullivan.

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Decision Support Database

• Total Health Expenditure

• Private Health Expenditure

• Government Health Expenditure

• Percent Healthcare Expenditure in GDP

• Population Aged Above 65

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Decision Support Databases

Decision Support DatabaseTable Total Healthcare Expenditure (Bn USD)

Region / Country 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012CAGR %

(2005 - 2012)North America

Canada 73.0 87.8 101.2 116.9 129.5 138.3 147.0 155.2 163.0 169.8 175.9 6.00United States 1,559.0 1,678.9 1,804.7 1,936.6 2,077.5 2,232.9 2,399.2 2,573.3 2,753.9 2,944.2 3,146.3 7.18

TOTAL 1,632.0 1,766.6 1,905.9 2,053.5 2,207.0 2,371.2 2,546.3 2,728.6 2,916.8 3,114.0 3,322.1 7.11

Latin America

Argentina 11.5 14.7 17.3 20.9 23.3 25.7 27.8 29.9 31.8 33.7 35.5 7.85Brazil 40.7 45.8 55.6 74.0 78.8 83.8 90.0 97.0 104.9 113.7 123.6 7.60Chile 3.8 4.4 5.8 7.0 8.0 9.0 9.9 10.8 11.8 12.8 13.8 10.17Mexico 59.6 58.5 62.2 72.3 78.8 84.7 91.0 97.5 104.0 110.4 116.7 7.08Peru 2.4 2.7 3.1 3.6 3.9 4.2 4.5 4.9 5.2 5.6 5.9 7.46Venezuela 4.7 4.7 6.2 7.2 8.2 9.3 10.5 11.8 13.4 15.3 17.7 13.82

TOTAL 122.7 130.8 150.2 185.0 200.9 216.7 233.8 251.8 271.1 291.5 313.2 7.81

Asia - Pacific

Australia 39.4 51.0 62.4 69.9 74.7 79.9 85.1 90.4 95.9 101.4 107.1 6.29China 71.9 84.3 98.7 116.0 134.3 152.9 172.5 193.7 217.0 242.5 270.7 12.87Hong Kong 9.4 9.5 10.0 10.9 11.9 13.0 14.1 15.5 16.9 18.5 20.3 9.25India 27.5 36.1 41.9 48.5 54.0 59.8 66.1 72.8 80.0 87.5 95.5 10.16Indonesia 6.4 8.0 8.8 9.3 10.6 12.0 13.5 15.3 17.3 19.6 22.2 13.15Japan 315.4 339.5 374.9 379.7 394.0 406.6 414.7 424.9 437.0 451.7 467.5 3.02Malaysia 3.6 4.0 4.6 5.2 5.9 6.7 7.6 8.6 9.6 10.8 11.9 12.66New Zealand 5.1 6.7 8.5 9.4 10.4 11.4 12.3 13.1 13.8 14.4 14.9 6.77Philippines 2.3 2.3 2.5 2.8 3.2 3.6 4.0 4.4 4.9 5.5 6.0 11.45Singapore 3.7 4.0 4.3 4.6 5.0 5.3 5.7 6.2 6.6 7.1 7.6 7.46South Korea 25.3 30.1 33.9 39.3 43.3 47.7 52.2 56.7 61.2 66.0 70.9 8.81Taiwan 16.9 17.8 19.2 21.0 22.8 24.7 26.5 28.2 30.0 31.8 33.6 6.92Thailand 7.8 8.5 9.6 10.7 11.9 13.3 14.8 16.6 18.7 21.1 23.8 12.18

TOTAL 534.6 601.6 679.2 727.3 781.9 836.8 889.1 946.3 1,008.8 1,077.7 1,152.0 6.79

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Decision Support Databases (Contd…)

Decision Support DatabaseTable Total Healthcare Expenditure (Bn USD)

Region / Country 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012CAGR %

(2005 - 2012)Western Europe

Austria 15.3 19.2 22.1 23.1 24.0 24.8 25.7 26.5 27.2 27.9 28.5 3.04Belgium 22.6 29.3 34.0 35.8 37.4 38.9 40.3 41.6 42.9 44.1 45.3 3.40Denmark 15.2 19.2 22.2 23.4 24.4 25.4 26.4 27.4 28.3 29.3 30.3 3.78Finland 9.5 11.8 13.6 14.4 15.1 16.0 16.9 17.7 18.5 19.3 20.1 4.90France 139.0 176.8 205.6 217.9 228.6 239.0 249.3 259.1 268.4 277.8 286.6 3.99Germany 211.1 258.9 294.6 305.9 314.9 323.7 332.6 341.2 349.3 358.1 366.6 2.62Greece 13.0 17.2 19.6 22.3 23.9 25.4 27.0 28.6 30.2 31.8 33.4 5.99Iceland 0.8 1.1 1.3 1.6 1.8 2.0 2.1 2.3 2.4 2.6 2.7 7.80Ireland 9.7 12.8 15.4 16.3 17.9 19.3 20.8 22.3 23.8 25.3 26.8 7.43Italy 99.6 122.3 139.7 143.4 149.1 154.0 159.0 163.8 168.1 172.0 175.4 2.92Luxembourg 1.5 1.9 2.3 2.5 2.7 2.8 2.9 3.0 3.2 3.3 3.4 4.14Netherlands 39.0 50.4 58.1 60.6 63.8 66.2 68.7 71.1 73.3 75.5 77.6 3.59Norway 18.3 22.7 26.1 30.4 32.5 34.7 36.9 39.3 41.4 43.4 45.5 5.94Portugal 11.3 14.3 16.5 17.3 18.2 19.1 20.0 20.9 21.9 22.8 23.8 4.60Spain 49.7 65.0 77.1 88.4 94.4 100.2 106.1 112.1 117.6 123.2 128.1 5.45Sweden 22.2 28.4 33.5 34.1 35.6 37.1 39.2 41.4 43.9 46.6 49.7 5.53Switzerland 29.7 37.0 41.5 43.1 45.7 48.4 51.1 53.8 56.5 59.3 62.2 5.39United Kingdom 121.0 141.5 170.0 180.7 191.9 203.3 214.8 227.0 238.7 250.4 262.6 5.49

TOTAL 828.6 1,029.6 1,193.2 1,261.1 1,321.7 1,380.3 1,439.8 1,499.0 1,555.5 1,612.8 1,668.5 4.08

Eastern Europe

Czech Republic 5.0 6.8 7.5 9.0 9.9 10.8 11.7 12.7 13.6 14.5 15.5 8.03Hungary 4.9 6.9 8.6 9.6 10.8 11.8 12.9 13.9 14.9 15.9 16.8 8.23Poland 12.5 13.6 15.2 17.9 19.7 21.2 22.9 24.7 26.5 28.2 29.8 7.59Russia 21.3 26.2 32.6 38.2 43.7 48.8 53.9 58.7 63.4 67.9 72.2 9.51Turkey 11.6 15.8 19.7 26.0 28.6 31.5 34.0 36.4 39.0 41.2 43.3 7.55

TOTAL 55.4 69.3 83.6 100.8 112.6 124.1 135.3 146.4 157.3 167.7 177.6 8.43

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Decision Support Databases (Contd…)

Decision Support DatabaseTable Total Healthcare Expenditure (Bn USD)

Region / Country 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012CAGR %

(2005 - 2012)Middle East & Africa

Egypt 4.0 3.5 3.7 4.4 5.5 6.5 7.5 8.5 9.7 11.0 12.4 16.03Israel 9.0 9.7 10.4 11.0 11.8 12.5 13.2 14.2 15.3 16.5 17.8 7.05Saudi Arabia 7.9 8.8 9.6 10.4 11.2 11.8 12.4 13.0 13.6 14.2 14.8 5.13South Africa 9.1 13.6 20.0 19.6 20.5 21.6 22.7 23.9 25.2 26.7 28.4 5.50

TOTAL 30.0 35.5 43.6 45.4 49.0 52.4 55.8 59.6 63.7 68.3 73.4 7.11

WORLD TOTAL 3,203.3 3,633.5 4,055.6 4,373.0 4,673.2 4,981.4 5,300.0 5,631.6 5,973.3 6,331.9 6,706.8 6.30

Note: All figures are rounded; the base year is 2005. Source: Frost & SullivanDefinition

Note1. Figures for 2005 are Frost & Sullivan estimates

The above figures indicate health care expenditure

Source: Frost & SullivanSource: Frost & Sullivan

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Decision Support Databases (Contd…)

Decision Support DatabaseTable Private Healthcare Expenditure (Bn USD)

Region / Country 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012CAGR %

(2005 - 2012)North America

Canada 22.2 26.2 30.5 35.6 39.7 42.6 45.5 48.3 50.8 53.1 55.2 6.48United States 841.0 913.2 980.5 1,045.3 1,078.0 1,155.7 1,240.9 1,330.0 1,421.0 1,517.4 1,614.5 6.41

TOTAL 863.2 939.4 1,011.0 1,080.8 1,117.7 1,198.3 1,286.4 1,378.2 1,471.9 1,570.5 1,669.7 6.41

Latin America

Argentina 5.7 7.3 8.5 10.5 12.1 13.6 15.0 16.3 17.5 18.8 20.0 9.71Brazil 22.0 24.7 30.0 39.8 42.3 44.8 48.0 51.5 55.4 59.7 64.6 7.14Chile 2.1 2.4 3.1 3.8 4.3 4.8 5.2 5.6 6.0 6.4 6.9 8.89Mexico 32.8 32.7 34.9 40.7 44.7 48.1 51.7 55.4 59.2 62.9 66.5 7.26Peru 1.2 1.4 1.6 1.8 2.0 2.2 2.4 2.5 2.7 3.0 3.2 8.26Venezuela 2.5 2.5 3.3 3.9 4.5 5.1 5.8 6.6 7.6 8.7 10.2 14.72

TOTAL 66.4 71.0 81.4 100.5 109.8 118.6 128.0 137.9 148.4 159.5 171.3 7.92

Asia - Pacific

Australia 12.3 16.3 20.0 22.5 24.4 26.5 28.8 31.4 34.1 37.0 40.2 8.65China 47.7 56.6 66.4 78.4 91.3 104.5 118.5 133.8 150.7 169.4 189.4 13.44Hong Kong 4.0 4.0 4.1 4.4 4.8 5.1 5.5 5.9 6.3 6.8 7.4 7.54India 21.6 28.5 33.1 38.5 42.9 47.8 53.0 58.5 64.4 70.7 77.4 10.49Indonesia 4.1 5.1 5.6 5.9 6.6 7.4 8.3 9.3 10.4 11.7 13.1 12.10Japan 57.7 61.0 68.8 74.2 78.4 79.6 77.9 76.4 75.0 75.7 76.6 0.45Malaysia 1.7 1.8 2.1 2.4 2.7 3.0 3.4 3.8 4.3 4.7 5.2 12.07New Zealand 1.1 1.5 1.8 2.0 2.1 2.3 2.4 2.6 2.7 2.8 2.8 5.39Philippines 1.4 1.4 1.5 1.7 2.0 2.3 2.5 2.8 3.1 3.5 3.8 11.89Singapore 2.6 2.8 3.0 3.2 3.5 3.8 4.1 4.4 4.8 5.2 5.6 8.27South Korea 11.9 14.1 15.7 17.9 19.3 20.7 22.0 23.0 23.9 24.6 25.1 4.95Taiwan 5.9 6.3 6.8 6.9 7.7 8.7 9.3 9.6 10.1 10.7 11.5 7.55Thailand 5.1 5.5 6.2 6.9 7.6 8.5 9.4 10.6 11.7 13.0 14.5 11.23

TOTAL 177.0 204.7 235.1 264.9 293.2 320.2 345.1 372.0 401.5 435.7 472.6 8.62

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Decision Support Databases (Contd…)

Decision Support DatabaseTable Private Healthcare Expenditure (Bn USD)

Region / Country 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012CAGR %

(2005 - 2012)Western Europe

Austria 4.6 5.7 6.6 6.9 7.1 7.4 7.6 7.8 8.0 8.2 8.4 2.78Belgium 6.5 8.4 9.7 10.2 10.6 10.9 11.2 11.5 11.8 12.0 12.2 2.66Denmark 13.5 17.1 19.7 20.8 21.6 22.5 23.4 24.2 25.0 25.9 26.7 3.65Finland 2.3 2.9 3.3 3.4 3.6 3.8 3.9 4.1 4.3 4.4 4.6 4.16France 33.4 42.2 49.0 51.6 53.9 56.1 58.0 60.1 62.1 64.0 65.7 3.50Germany 45.4 55.7 63.1 65.4 67.1 68.6 70.4 72.0 73.0 74.5 75.9 2.16Greece 6.1 8.1 9.2 10.4 11.1 11.8 12.5 13.2 13.9 14.6 15.2 5.60Iceland 0.1 0.2 0.2 0.3 0.3 0.3 0.3 0.4 0.4 0.4 0.4 6.94Ireland 2.4 3.2 3.9 4.1 4.5 4.9 5.3 5.7 6.1 6.5 6.9 7.84Italy 24.3 29.8 34.0 34.9 36.2 37.3 38.5 39.6 40.5 41.4 42.1 2.72Luxembourg 0.2 0.3 0.4 0.4 0.4 0.5 0.5 0.5 0.6 0.6 0.6 6.85Netherlands 13.4 19.0 22.5 24.4 24.0 25.6 27.0 28.2 28.9 29.7 30.3 3.14Norway 3.0 3.9 4.5 5.2 5.7 6.1 6.6 7.1 7.6 8.0 8.5 7.18Portugal 3.4 4.2 4.8 5.1 5.3 5.5 5.8 6.0 6.3 6.5 6.8 4.22Spain 14.3 18.6 22.1 25.2 26.8 28.4 30.0 31.6 33.1 34.5 35.8 5.13Sweden 3.3 4.2 4.9 5.0 5.2 5.4 5.7 6.0 6.3 6.6 7.1 5.14Switzerland 12.5 15.5 17.3 17.9 18.8 19.7 20.6 21.5 22.3 23.2 24.1 4.38United Kingdom 20.1 23.2 27.4 28.4 29.4 30.3 31.4 32.2 32.7 33.3 33.6 2.46

TOTAL 208.8 262.0 302.3 319.3 331.4 345.0 358.5 371.7 382.7 394.2 404.7 3.45

Eastern Europe

Czech Republic 0.4 0.6 0.6 0.9 0.9 0.9 1.0 1.1 1.2 1.3 1.4 5.91Hungary 1.5 2.1 2.6 2.9 3.3 3.6 4.0 4.3 4.6 4.9 5.2 8.65Poland 3.5 3.8 4.2 4.9 5.4 5.8 6.3 6.7 7.1 7.5 7.9 7.05Russia 9.4 11.6 14.4 16.9 19.3 21.7 23.9 26.1 28.3 30.4 32.4 9.73Turkey 4.0 5.5 6.8 9.1 10.1 11.2 12.2 13.2 14.1 15.1 16.0 8.39

TOTAL 18.8 23.5 28.7 34.8 39.0 43.2 47.4 51.4 55.4 59.2 62.9 8.84

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Decision Support Databases (Contd…)

Decision Support DatabaseTable Private Healthcare Expenditure (Bn USD)

Region / Country 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012CAGR %

(2005 - 2012)Middle East & Africa

Egypt 2.7 2.3 2.6 3.1 4.0 4.8 5.6 6.4 7.3 8.3 9.4 17.41Israel 3.4 3.5 4.1 4.6 5.0 5.4 5.8 6.3 6.8 7.4 8.1 8.34Saudi Arabia 1.8 2.0 2.2 2.4 2.6 2.7 2.8 3.0 3.1 3.2 3.4 5.05South Africa 6.1 8.9 13.1 13.1 13.7 14.3 15.1 15.9 16.9 18.0 19.2 5.68

TOTAL 14.0 16.7 22.0 23.1 25.2 27.3 29.3 31.6 34.1 36.9 40.0 8.17

WORLD TOTAL 1,348.2 1,517.3 1,680.4 1,823.3 1,916.3 2,052.5 2,194.7 2,342.7 2,493.8 2,655.8 2,821.2 6.43

Note: All figures are rounded; the base year is 2005. Source: Frost & SullivanDefinition

Note1. Figures for 2005 are Frost & Sullivan estimates

Figures in the table represents private health expenditure

Source: Frost & SullivanSource: Frost & Sullivan

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Decision Support Databases (Contd…)

Decision Support DatabaseTable Government Healthcare Expenditure (Bn USD)

Region / Country 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012CAGR %

(2005 - 2012)North America

Canada 50.8 61.6 70.7 81.4 89.8 95.7 101.5 107.0 112.1 116.7 120.7 5.79United States 718.0 765.7 824.2 891.3 999.5 1,077.2 1,158.4 1,243.4 1,332.9 1,426.8 1,531.8 8.04

TOTAL 768.8 827.3 895.0 972.7 1,089.3 1,172.9 1,259.9 1,350.3 1,445.0 1,543.5 1,652.5 7.87

Latin America

Argentina 5.8 7.4 8.8 10.4 11.2 12.0 12.8 13.6 14.3 14.9 15.5 5.77Brazil 18.7 21.1 25.6 34.2 36.5 39.0 42.0 45.5 49.5 54.0 59.1 8.12Chile 1.7 2.0 2.6 3.2 3.7 4.2 4.7 5.3 5.8 6.4 6.9 11.58Mexico 26.8 25.9 27.4 31.6 34.1 36.6 39.3 42.0 44.8 47.5 50.2 6.83Peru 1.2 1.3 1.5 1.8 1.9 2.0 2.2 2.3 2.5 2.6 2.8 6.58Venezuela 2.2 2.2 2.8 3.3 3.7 4.2 4.7 5.2 5.9 6.6 7.6 12.69

TOTAL 56.3 59.8 68.8 84.5 91.1 98.1 105.8 113.9 122.7 132.0 141.9 7.69

Asia - Pacific

Australia 27.1 34.7 42.5 47.4 50.4 53.4 56.3 59.0 61.8 64.4 66.9 5.05China 24.2 27.7 32.3 37.7 43.0 48.4 54.0 59.9 66.3 73.2 81.3 11.62Hong Kong 5.4 5.6 5.9 6.5 7.1 7.8 8.6 9.6 10.6 11.7 12.9 10.34India 5.9 7.6 8.7 10.0 11.1 12.0 13.1 14.3 15.6 16.8 18.1 8.82Indonesia 2.3 2.9 3.2 3.5 4.0 4.6 5.2 6.0 6.9 7.9 9.1 14.83Japan 257.7 278.5 306.1 305.5 315.6 327.0 336.8 348.5 361.9 376.0 390.9 3.59Malaysia 1.9 2.2 2.5 2.8 3.2 3.7 4.2 4.8 5.4 6.0 6.7 13.13New Zealand 4.0 5.3 6.7 7.5 8.3 9.2 9.9 10.5 11.1 11.7 12.1 7.11Philippines 0.9 0.9 1.0 1.1 1.2 1.4 1.5 1.6 1.8 2.0 2.2 10.70Singapore 1.2 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.9 2.0 5.45South Korea 13.4 16.0 18.2 21.4 24.0 27.0 30.2 33.6 37.3 41.4 45.8 11.52Taiwan 11.0 11.5 12.4 14.1 15.2 16.1 17.2 18.7 19.9 21.1 22.1 6.61Thailand 2.6 3.0 3.4 3.8 4.3 4.8 5.4 6.0 6.9 8.1 9.3 13.80

TOTAL 357.5 396.9 444.1 462.4 488.8 516.7 543.9 574.3 607.3 642.0 679.4 5.65

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Decision Support Databases (Contd…)

Decision Support DatabaseTable Government Healthcare Expenditure (Bn USD)

Region / Country 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012CAGR %

(2005 - 2012)Western Europe

Austria 10.7 13.5 15.5 16.2 16.9 17.5 18.1 18.7 19.2 19.7 20.2 3.15Belgium 16.1 20.9 24.3 25.7 26.8 28.0 29.1 30.1 31.1 32.1 33.1 3.68Denmark 1.7 2.1 2.5 2.6 2.7 2.9 3.0 3.2 3.3 3.5 3.6 4.76Finland 7.2 9.0 10.3 10.9 11.6 12.2 12.9 13.6 14.2 14.9 15.5 5.13France 105.7 134.6 156.6 166.3 174.8 182.9 191.3 199.0 206.4 213.9 221.0 4.14Germany 165.7 203.3 231.6 240.6 247.9 255.1 262.2 269.1 276.3 283.6 290.7 2.74Greece 6.9 9.1 10.4 11.9 12.8 13.7 14.5 15.4 16.3 17.2 18.2 6.32Iceland 0.7 0.9 1.1 1.4 1.5 1.7 1.8 1.9 2.1 2.2 2.3 7.95Ireland 7.3 9.6 11.6 12.2 13.4 14.5 15.5 16.6 17.7 18.8 19.9 7.29Italy 75.3 92.4 105.6 108.5 112.9 116.7 120.5 124.3 127.6 130.7 133.3 2.98Luxembourg 1.3 1.6 1.9 2.1 2.3 2.4 2.4 2.5 2.6 2.7 2.7 3.59Netherlands 25.6 31.3 35.7 36.2 39.8 40.7 41.8 42.9 44.4 45.9 47.3 3.88Norway 15.3 18.9 21.6 25.1 26.8 28.5 30.3 32.2 33.8 35.4 37.0 5.67Portugal 8.0 10.1 11.6 12.3 12.9 13.6 14.3 14.9 15.6 16.3 17.0 4.76Spain 35.4 46.4 55.0 63.2 67.6 71.8 76.1 80.5 84.5 88.6 92.3 5.57Sweden 18.9 24.2 28.6 29.1 30.4 31.7 33.5 35.5 37.6 39.9 42.6 5.60Switzerland 17.2 21.5 24.2 25.2 26.9 28.7 30.5 32.3 34.2 36.1 38.1 6.07United Kingdom 100.9 118.3 142.6 152.3 162.6 173.0 183.5 194.7 206.0 217.1 229.0 6.00

TOTAL 619.8 767.6 890.9 941.8 990.3 1,035.3 1,081.3 1,127.3 1,172.8 1,218.6 1,263.7 4.29

Eastern Europe

Czech Republic 4.6 6.2 6.9 8.1 9.1 9.9 10.7 11.5 12.4 13.3 14.1 8.25Hungary 3.4 4.8 6.0 6.7 7.5 8.2 8.9 9.6 10.3 10.9 11.6 8.05Poland 9.1 9.9 11.0 13.0 14.3 15.4 16.6 18.0 19.3 20.6 21.9 7.79Russia 11.9 14.6 18.2 21.3 24.3 27.2 29.9 32.6 35.1 37.6 39.8 9.34Turkey 7.7 10.4 12.9 16.9 18.5 20.3 21.8 23.3 24.8 26.1 27.3 7.08

TOTAL 36.6 45.9 54.9 66.0 73.7 80.9 88.0 95.1 102.0 108.5 114.7 8.21

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Decision Support Databases (Contd…)

Decision Support DatabaseTable Government Healthcare Expenditure (Bn USD)

Region / Country 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012CAGR %

(2005 - 2012)Middle East & Africa

Egypt 1.3 1.2 1.1 1.3 1.5 1.7 1.9 2.2 2.4 2.7 3.0 12.39Israel 5.7 6.2 6.3 6.4 6.7 7.1 7.4 7.9 8.5 9.1 9.7 6.06Saudi Arabia 6.1 6.8 7.4 8.0 8.7 9.1 9.6 10.0 10.5 11.0 11.4 5.15South Africa 3.0 4.7 6.8 6.5 6.8 7.2 7.6 8.0 8.3 8.7 9.2 5.14

TOTAL 16.0 18.8 21.6 22.3 23.7 25.1 26.5 28.1 29.7 31.5 33.3 5.93

WORLD TOTAL 1,855.1 2,116.2 2,375.2 2,549.6 2,756.9 2,929.0 3,105.3 3,288.9 3,479.5 3,676.2 3,885.5 6.20

Note: All figures are rounded; the base year is 2005. Source: Frost & SullivanDefinition

Note1. Figures for 2005 are Frost & Sullivan estimates

The above figures indicate health care expenditure by government

Source: Frost & SullivanSource: Frost & Sullivan

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Decision Support DatabaseTable Percent Healthcare Expenditure in GDP

Region / Country 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012North America

Canada 9.9 10.1 10.2 10.3 10.4 10.7 11.0 11.2 11.4 11.5 11.6United States 14.9 15.3 15.4 15.2 15.4 15.6 15.9 16.3 16.6 17.0 17.4

TOTAL 14.6 14.9 15.0 14.8 15.0 15.2 15.5 15.8 16.2 16.5 16.9

Latin America

Argentina 11.3 11.3 11.3 11.4 11.5 11.7 11.8 11.9 12.0 12.2 12.4Brazil 9.1 9.1 9.2 9.3 9.3 9.3 9.3 9.3 9.4 9.5 9.6Chile 5.8 6.0 6.1 6.4 6.4 6.5 6.5 6.5 6.6 6.7 6.7Mexico 9.2 9.4 9.4 9.4 9.6 9.8 9.9 10.1 10.3 10.5 10.7Peru 4.4 4.5 4.5 4.6 4.7 4.8 4.9 5.0 5.2 5.3 5.5Venezuela 4.9 5.5 5.5 5.6 5.7 5.7 5.8 5.8 5.9 5.9 5.9

TOTAL 8.7 8.8 8.9 9.0 9.0 9.1 9.2 9.2 9.3 9.4 9.5

Asia - Pacific

Australia 9.6 9.7 9.9 10.5 10.7 10.9 11.0 11.1 11.2 11.4 11.7China 5.7 6.0 6.0 6.1 6.4 6.6 6.8 7.0 7.1 7.3 7.5Hong Kong 5.8 6.1 6.2 6.2 6.3 6.6 6.8 6.9 7.1 7.3 7.5India 6.1 6.1 6.4 6.4 6.5 6.6 6.7 6.7 6.8 6.9 6.9Indonesia 3.7 3.4 3.4 3.5 3.5 3.5 3.6 3.7 3.8 3.9 4.0Japan 6.8 6.9 7.0 7.0 7.4 7.9 7.7 7.7 7.8 7.8 7.8Malaysia 3.8 3.9 3.9 4.0 4.1 4.3 4.4 4.6 4.7 4.8 5.0New Zealand 8.7 8.6 8.7 9.0 9.2 9.3 9.5 9.7 9.8 9.9 9.9Philippines 2.9 2.9 2.9 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.1Singapore 3.8 3.9 3.9 3.9 3.9 4.0 4.0 4.0 4.0 4.1 4.2South Korea 4.9 4.9 5.0 5.0 5.1 5.1 5.2 5.2 5.2 5.3 5.3Taiwan 6.0 6.0 6.1 6.1 6.1 6.1 6.2 6.2 6.3 6.3 6.3Thailand 5.8 5.9 5.9 6.1 6.2 6.3 6.4 6.6 6.8 7.1 7.5

TOTAL 6.4 6.5 6.6 6.6 6.8 7.1 7.0 7.1 7.2 7.2 7.3

Decision Support Databases (Contd…)

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Decision Support Databases (Contd…)

Decision Support DatabaseTable Percent Healthcare Expenditure in GDP

Region / Country 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Western Europe

Austria 7.5 7.5 7.6 7.6 7.6 7.6 7.6 7.6 7.6 7.7 7.7Belgium 9.1 9.6 9.6 9.7 9.8 9.9 9.9 10.0 10.1 10.2 10.3Denmark 8.8 9.1 9.2 9.1 9.2 9.3 9.4 9.5 9.5 9.5 9.5Finland 7.2 7.3 7.3 7.5 7.6 7.6 7.7 7.7 7.7 7.8 7.8France 9.7 9.8 10.0 10.3 10.5 10.7 10.8 10.9 11.0 11.1 11.3Germany 10.6 10.6 10.7 10.9 11.1 11.2 11.3 11.4 11.5 11.7 11.9Greece 9.8 9.9 9.9 10.0 10.1 10.2 10.2 10.3 10.2 10.3 10.3Iceland 9.9 10.5 10.6 10.6 10.9 11.1 11.3 11.5 11.7 11.9 12.0Ireland 8.0 8.4 8.5 8.6 8.8 9.0 9.2 9.3 9.5 9.7 9.9Italy 8.4 8.3 8.3 8.4 8.4 8.4 8.4 8.5 8.5 8.5 8.5Luxembourg 6.9 6.9 7.0 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.7Netherlands 9.3 9.8 9.8 10.6 10.9 11.0 11.1 11.2 11.3 11.4 11.6Norway 9.6 10.3 10.4 10.4 10.6 10.8 11.0 11.2 11.4 11.6 11.8Portugal 9.3 9.7 9.9 10.1 10.2 10.3 10.5 10.6 10.7 10.9 11.0Spain 7.6 7.7 7.8 7.9 7.9 8.0 8.1 8.2 8.2 8.3 8.4Sweden 9.2 9.4 9.6 9.7 9.9 10.0 10.1 10.2 10.3 10.4 10.6Switzerland 11.1 11.5 11.5 11.7 11.8 11.9 12.0 12.1 12.3 12.4 12.6United Kingdom 7.7 7.8 8.0 8.2 8.4 8.6 8.8 9.0 9.2 9.3 9.5

TOTAL 9.0 9.1 9.2 9.3 9.5 9.6 9.7 9.8 9.9 10.0 10.1

Eastern Europe

Czech Republic 7.2 7.5 7.5 7.6 7.6 7.7 7.7 7.7 7.9 8.0 8.2Hungary 7.8 8.4 8.6 8.8 8.9 9.0 9.1 9.2 9.3 9.4 9.5Poland 5.9 5.9 6.0 6.0 6.0 6.1 6.3 6.4 6.5 6.6 6.6Russia 6.1 6.1 6.2 6.2 6.2 6.3 6.3 6.4 6.4 6.5 6.6Turkey 6.5 6.6 6.7 6.8 6.8 6.8 6.8 6.9 7.0 7.1 7.2

TOTAL 6.6 6.6 6.6 6.7 6.7 6.8 6.8 6.9 6.9 7.0 7.0

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Decision Support Databases (Contd…)

Decision Support DatabaseTable Percent Healthcare Expenditure in GDP

Region / Country 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Middle East & Africa

Egypt 4.9 5.0 5.0 5.1 5.1 5.2 5.2 5.2 5.2 5.3 5.3Israel 8.7 8.8 8.8 9.0 9.1 9.1 9.2 9.3 9.4 9.5 9.6Saudi Arabia 4.3 4.3 4.4 4.4 4.4 4.5 4.5 4.5 4.6 4.6 4.7South Africa 8.7 8.2 9.4 8.2 8.1 8.2 8.2 8.2 8.2 8.2 8.2

TOTAL 6.1 6.1 6.1 6.2 6.2 6.2 6.2 6.3 6.2 6.3 6.3

WORLD TOTAL 10.2 10.2 10.3 10.3 10.4 10.6 10.7 10.9 11.0 11.2 11.4

Note: All figures are rounded; the base year is 2005. Source: Frost & SullivanDefinition

Note1. Regional and World total are calculated using weighted average of countries in the region and are not the simple average.

The above figures represent Healthcare Expenditure as percentage of Gross Domestic Product.

Source: Frost & SullivanSource: Frost & Sullivan

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Decision Support Databases (Contd…)

Decision Support DatabaseTable Population 65 Plus (Mn)

Region / Country 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012CAGR %

(2005 - 2012)North America

Canada 4.1 4.2 4.2 4.3 4.4 4.5 4.6 4.7 4.9 5.0 5.2 2.66United States 35.6 35.9 36.3 36.7 37.2 37.9 38.7 39.5 40.2 41.1 42.6 2.14

TOTAL 39.7 40.1 40.5 41.0 41.6 42.4 43.3 44.2 45.1 46.1 47.7 2.19

Latin America

Argentina 4.0 4.0 4.1 4.2 4.2 4.3 4.4 4.5 4.6 4.6 4.7 1.88Brazil 10.0 10.3 10.7 11.1 11.5 11.9 12.3 12.7 13.2 13.7 14.3 3.67Chile 1.2 1.2 1.2 1.3 1.3 1.4 1.4 1.5 1.6 1.6 1.7 3.76Mexico 5.3 5.5 5.8 6.0 6.2 6.4 6.7 6.9 7.2 7.5 7.7 3.74Peru 1.3 1.4 1.4 1.5 1.5 1.6 1.6 1.7 1.7 1.8 1.8 3.35Venezuela 1.2 1.2 1.3 1.3 1.3 1.4 1.4 1.5 1.6 1.6 1.7 3.84

TOTAL 22.9 23.7 24.5 25.3 26.1 27.0 27.9 28.8 29.8 30.8 31.9 3.40

Asia - Pacific

Australia 2.5 2.5 2.6 2.6 2.7 2.7 2.8 2.8 2.9 3.0 3.1 2.59China 92.6 95.0 97.1 99.3 101.7 104.0 106.1 108.5 111.3 114.4 118.2 2.54Hong Kong 0.8 0.8 0.9 0.9 0.9 0.9 0.9 0.9 1.0 1.0 1.0 1.96India 48.7 49.9 51.1 52.5 54.0 55.6 57.4 59.2 61.2 63.3 65.5 3.29Indonesia 11.1 11.6 12.2 12.7 13.2 13.6 14.1 14.6 15.0 15.5 15.8 3.13Japan 23.1 23.7 24.2 24.8 25.5 26.3 27.0 27.7 28.1 28.3 29.1 2.18Malaysia 1.0 1.0 1.1 1.1 1.2 1.2 1.2 1.3 1.3 1.4 1.5 3.91New Zealand 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.6 2.29Philippines 3.2 3.3 3.4 3.5 3.6 3.8 3.9 4.0 4.2 4.3 4.5 3.61Singapore 0.3 0.3 0.3 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.5 4.07South Korea 3.7 3.9 4.1 4.3 4.5 4.7 4.9 5.0 5.2 5.3 5.6 3.56Taiwan 2.0 2.1 2.2 2.2 2.3 2.3 2.4 2.4 2.5 2.5 2.6 2.24Thailand 4.4 4.6 4.8 5.0 5.2 5.4 5.5 5.7 5.9 6.1 6.3 3.26

TOTAL 193.8 199.2 204.3 209.6 215.4 221.4 227.1 233.2 239.4 246.0 254.0 2.79

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Decision Support Databases (Contd…)

Decision Support DatabaseTable Population 65 Plus (Mn)

Region / Country 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012CAGR %

(2005 - 2012)

Western Europe

Austria 1.3 1.3 1.3 1.4 1.4 1.4 1.5 1.5 1.5 1.5 1.5 1.38Belgium 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.9 1.9 1.9 0.99Denmark 0.8 0.8 0.8 0.8 0.8 0.8 0.9 0.9 0.9 1.0 1.0 2.81Finland 0.8 0.8 0.8 0.8 0.9 0.9 0.9 0.9 0.9 0.9 1.0 2.23France 9.7 9.8 9.9 10.0 10.0 10.0 10.1 10.2 10.3 10.5 10.8 1.26Germany 14.2 14.6 15.1 15.6 16.0 16.3 16.5 16.7 16.8 16.7 16.8 0.80Greece 1.9 2.0 2.0 2.0 2.0 2.0 2.1 2.1 2.1 2.1 2.1 0.88Iceland 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.00Ireland 0.4 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.6 2.65Italy 10.7 10.9 11.1 11.3 11.5 11.6 11.7 11.7 11.8 11.9 12.1 0.95Luxembourg 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 2.25Netherlands 2.2 2.2 2.3 2.3 2.4 2.4 2.4 2.5 2.5 2.6 2.7 2.53Norway 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.8 0.8 2.09Portugal 1.7 1.8 1.8 1.8 1.8 1.8 1.9 1.9 1.9 1.9 2.0 1.24Spain 7.0 7.1 7.1 7.1 7.2 7.2 7.3 7.4 7.5 7.5 7.6 1.00Sweden 1.5 1.6 1.6 1.6 1.6 1.6 1.7 1.7 1.8 1.8 1.8 2.37Switzerland 1.1 1.1 1.1 1.2 1.2 1.2 1.2 1.2 1.3 1.3 1.3 2.03United Kingdom 9.4 9.4 9.5 9.5 9.6 9.6 9.7 9.9 10.0 10.2 10.5 1.58

TOTAL 65.4 66.4 67.4 68.4 69.3 70.0 70.8 71.7 72.4 73.3 74.6 1.24

Eastern Europe

Czech Republic 1.4 1.4 1.4 1.5 1.5 1.5 1.5 1.6 1.6 1.7 1.7 2.64Hungary 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.6 1.6 1.6 1.6 0.86Poland 4.9 5.0 5.0 5.1 5.1 5.1 5.2 5.2 5.2 5.3 5.4 0.83Russia 18.8 19.3 19.8 20.3 20.6 20.8 20.4 19.8 19.2 18.8 18.9 (1.38)Turkey 4.2 4.4 4.5 4.7 4.8 4.9 5.1 5.2 5.3 5.5 5.6 2.54

TOTAL 30.8 31.6 32.3 33.0 33.5 33.9 33.7 33.3 32.9 32.8 33.2 (0.14)

32P3B5-54

Decision Support Databases (Contd…)

Decision Support DatabaseTable Population 65 Plus (Mn)

Region / Country 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012CAGR %

(2005 - 2012)Middle East & Africa

Egypt 3.1 3.2 3.3 3.4 3.5 3.7 3.8 4.0 4.1 4.3 4.5 4.12Israel 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.7 0.7 0.7 0.7 2.04Saudi Arabia 0.6 0.6 0.6 0.6 0.6 0.7 0.7 0.7 0.7 0.7 0.8 2.91South Africa 2.1 2.2 2.2 2.3 2.3 2.4 2.4 2.5 2.5 2.6 2.6 1.77

TOTAL 6.4 6.6 6.7 6.9 7.1 7.4 7.6 7.8 8.0 8.3 8.6 3.09

WORLD TOTAL 358.9 367.4 375.7 384.3 393.1 402.0 410.3 418.9 427.6 437.4 450.1 2.28

Note: All figures are rounded; the base year is 2005. Source: Frost & SullivanDefinition

The above figures represent total midyear population aged 65 years and above

Source: Frost & SullivanSource: Frost & Sullivan

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Who is Frost & Sullivan

The Growth Partnership Company

• Founded in 1961, Frost & Sullivan has over 45 years of assisting clients with their decision-making

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Practices

34

About Frost & Sullivan

35P3B5-54

What Makes Us Unique

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36P3B5-54

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37P3B5-54

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