Cybrary on 7/30/2015. MarketLine. (2014). Health care ... care equipment & supplies in the United...

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MarketLine. (2014). Health care equipment & supplies in the United States, 1–34.

This resource was retrieved from the Business Source Complete database in the CEC Cybrary on 7/30/2015.

MarketLine. (2014). Global health care equipment & supplies, 1–30.

Global - Health Care Equipment & Supplies 0199 - 2067 - 2013

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

MarketLine Industry Profile

Global Health Care Equipment & Supplies October 2014

Reference Code: 0199-2067

Publication Date: October 2014

WWW.MARKETLINE.COM

MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED



EXECUTIVE SUMMARY

Market value The global health care equipment & supplies market grew by 4.8% in 2013 to reach a value of $361,766.8 million.

Market value forecast In 2018, the global health care equipment & supplies market is forecast to have a value of $479,482.6 million, an

increase of 32.5% since 2013.

Category segmentation Disposable equipment & supplies is the largest segment of the global health care equipment & supplies market,

accounting for 40.1% of the market's total value.

Geography segmentation Americas accounts for 45.4% of the global health care equipment & supplies market value.

Market rivalry The global health care equipment & supplies market is characterized by the presence of large, international incumbents,

which increases rivalry somewhat.



TABLE OF CONTENTS

Executive Summary ....................................................................................................................................................... 2

Market value ............................................................................................................................................................... 2

Market value forecast ................................................................................................................................................. 2

Category segmentation .............................................................................................................................................. 2

Geography segmentation ........................................................................................................................................... 2

Market rivalry .............................................................................................................................................................. 2

Market Overview ............................................................................................................................................................ 6

Market definition ......................................................................................................................................................... 6

Market analysis .......................................................................................................................................................... 6

Market Data ................................................................................................................................................................... 7

Market value ............................................................................................................................................................... 7

Market Segmentation ..................................................................................................................................................... 8

Category segmentation .............................................................................................................................................. 8

Geography segmentation ........................................................................................................................................... 9

Market Outlook ............................................................................................................................................................. 10

Market value forecast ............................................................................................................................................... 10

Five Forces Analysis .................................................................................................................................................... 11

Summary .................................................................................................................................................................. 11

Buyer power ............................................................................................................................................................. 12

Supplier power ......................................................................................................................................................... 13

New entrants ............................................................................................................................................................ 14

Threat of substitutes ................................................................................................................................................. 15

Degree of rivalry ....................................................................................................................................................... 16

Leading Companies ..................................................................................................................................................... 17

Abbott Laboratories .................................................................................................................................................. 17

Johnson & Johnson .................................................................................................................................................. 20

Medtronic, Inc. .......................................................................................................................................................... 23

Siemens Healthcare ................................................................................................................................................. 26

Appendix ...................................................................................................................................................................... 29

Methodology ............................................................................................................................................................. 29

Industry associations ................................................................................................................................................ 30

Related MarketLine research ................................................................................................................................... 30



LIST OF TABLES

Table 1: Global health care equipment & supplies market value: $ million, 2009–13 .................................................... 7

Table 2: Global health care equipment & supplies market category segmentation: $ million, 2013 ............................... 8

Table 3: Global health care equipment & supplies market geography segmentation: $ million, 2013 ............................ 9

Table 4: Global health care equipment & supplies market value forecast: $ million, 2013–18 ..................................... 10

Table 5: Abbott Laboratories: key facts ........................................................................................................................ 17

Table 6: Abbott Laboratories: key financials ($) ........................................................................................................... 18

Table 7: Abbott Laboratories: key financial ratios......................................................................................................... 18

Table 8: Johnson & Johnson: key facts ........................................................................................................................ 20

Table 9: Johnson & Johnson: key financials ($) ........................................................................................................... 21

Table 10: Johnson & Johnson: key financial ratios ...................................................................................................... 21

Table 11: Medtronic, Inc.: key facts .............................................................................................................................. 23

Table 12: Medtronic, Inc.: key financials ($) ................................................................................................................. 24

Table 13: Medtronic, Inc.: key financial ratios .............................................................................................................. 24

Table 14: Siemens Healthcare: key facts ..................................................................................................................... 26

Table 15: Siemens Healthcare: key financials ($) ........................................................................................................ 27

Table 16: Siemens Healthcare: key financials (€) ........................................................................................................ 27

Table 17: Siemens Healthcare: key financial ratios...................................................................................................... 27



LIST OF FIGURES

Figure 1: Global health care equipment & supplies market value: $ million, 2009–13 ................................................... 7

Figure 2: Global health care equipment & supplies market category segmentation: % share, by value, 2013 .............. 8

Figure 3: Global health care equipment & supplies market geography segmentation: % share, by value, 2013 ........... 9

Figure 4: Global health care equipment & supplies market value forecast: $ million, 2013–18 .................................... 10

Figure 5: Forces driving competition in the global health care equipment & supplies market, 2013 ............................ 11

Figure 6: Drivers of buyer power in the global health care equipment & supplies market, 2013 .................................. 12

Figure 7: Drivers of supplier power in the global health care equipment & supplies market, 2013 .............................. 13

Figure 8: Factors influencing the likelihood of new entrants in the global health care equipment & supplies market, 2013

..................................................................................................................................................................................... 14

Figure 9: Factors influencing the threat of substitutes in the global health care equipment & supplies market, 2013 .. 15

Figure 10: Drivers of degree of rivalry in the global health care equipment & supplies market, 2013 .......................... 16

Figure 11: Abbott Laboratories: revenues & profitability ............................................................................................... 19

Figure 12: Abbott Laboratories: assets & liabilities....................................................................................................... 19

Figure 13: Johnson & Johnson: revenues & profitability .............................................................................................. 22

Figure 14: Johnson & Johnson: assets & liabilities ...................................................................................................... 22

Figure 15: Medtronic, Inc.: revenues & profitability ...................................................................................................... 25

Figure 16: Medtronic, Inc.: assets & liabilities .............................................................................................................. 25

Figure 17: Siemens Healthcare: revenues & profitability .............................................................................................. 28



MARKET OVERVIEW

Market definition The health care equipment & supplies market analyzes manufacturers of health care equipment, medical devices and

supplies. The market profile covers disposable equipment and supplies such as syringes, catheters, electrodes, sutures,

bandages, implantable prostheses, orthotics and prosthetics; otologic & technical aids such as hearing aids and

wheelchairs; ophthalmic equipment such as eye glasses, contact lenses and ophthalmoscopes; in vitro diagnostics such

as devices for clinical chemistry, microbiology, immunology and genetic tests; and other equipment such as imaging

equipment and films and equipment for radiotherapy, dialysis, endoscopy, anesthetics, etc.

Market value refers to the revenues generated through the sale of health care equipment and supplies. The market is

valued at manufacturers’ selling price with any currency conversions calculated using constant 2013 annual average

exchange rates

For the purposes of this report, the global market consists of North America, South America, Western Europe, Eastern

Europe, MEA, and Asia-Pacific.

North America consists of Canada, Mexico, and the United States.

South America comprises Argentina, Brazil, Chile, Colombia, and Venezuela.

Western Europe comprises Belgium, Denmark, France, Germany, Greece, Italy, the Netherlands, Norway, Spain,

Sweden, Switzerland, Turkey, and the United Kingdom.

Eastern Europe comprises the Czech Republic, Hungary, Poland, Romania, Russia, and Ukraine.

Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New Zealand, Singapore, South Korea, Taiwan, and

Thailand.

Middle East-Africa (MEA) comprises Egypt, Israel, Nigeria, Saudi Arabia, South Africa, and United Arab Emirates.

Market analysis The global health care equipment & supplies market has experienced fairly strong growth in recent years and this trend

is forecast to continue through to 2018.

The global health care equipment & supplies market had total revenues of $361,766.8m in 2013, representing a

compound annual growth rate (CAGR) of 5.1% between 2009 and 2013. In comparison, the European and Asia-Pacific

markets grew with CAGRs of 3.2% and 9.1% respectively, over the same period, to reach respective values of

$116,953.5m and $75,895.8m in 2013.

The disposable equipment & supplies segment was the market's most lucrative in 2013, with total revenues of

$145,094.7m, equivalent to 40.1% of the market's overall value. The technical aids segment contributed revenues of

$39,567.4m in 2013, equating to 10.9% of the market's aggregate value.

The performance of the market is forecast to accelerate, with an anticipated CAGR of 5.8% for the five-year period 2013

- 2018, which is expected to drive the market to a value of $479,482.6m by the end of 2018. Comparatively, the

European and Asia-Pacific markets will grow with CAGRs of 4.6% and 8.4% respectively, over the same period, to reach

respective values of $146,360.0m and $113,480.9m in 2018.



MARKET DATA

Market value The global health care equipment & supplies market grew by 4.8% in 2013 to reach a value of $361,766.8 million.

The compound annual growth rate of the market in the period 2009–13 was 5.1%.

Table 1: Global health care equipment & supplies market value: $ million, 2009–13

Year $ million € million % Growth

2009 296,958.6 223,596.6

2010 312,107.8 235,003.2 5.1%

2011 329,977.4 248,458.3 5.7%

2012 345,238.4 259,949.1 4.6%

2013 361,766.8 272,394.2 4.8%

CAGR: 2009–13 5.1%

SOURCE: MARKETLINE M A R K E T L I N E

Figure 1: Global health care equipment & supplies market value: $ million, 2009–13




MARKET SEGMENTATION

Category segmentation Disposable equipment & supplies is the largest segment of the global health care equipment & supplies market,

accounting for 40.1% of the market's total value.

The Other equipment segment accounts for a further 18.4% of the market.

Table 2: Global health care equipment & supplies market category segmentation: $ million, 2013

Category 2013 %

Disposable equipment & supplies 145,094.7 40.1%

Other equipment 66,416.8 18.4%

Technical aids 39,567.4 10.9%

Ophthalmic equipment 37,386.8 10.3%

IV diagnostics 36,980.2 10.2%

Dental surgery equipment & supplies

36,320.8 10.0%

Total 361,766.7 100%


Figure 2: Global health care equipment & supplies market category segmentation: % share, by value, 2013




Geography segmentation Americas accounts for 45.4% of the global health care equipment & supplies market value.

Europe accounts for a further 32.3% of the global market.

Table 3: Global health care equipment & supplies market geography segmentation: $ million, 2013

Geography 2013 %

Americas 164,290.0 45.4

Europe 116,953.5 32.3

Asia-Pacific 75,895.8 21.0

Middle East & Africa 4,627.5 1.3

Total 361,766.8 100%


Figure 3: Global health care equipment & supplies market geography segmentation: % share, by value, 2013




MARKET OUTLOOK

Market value forecast In 2018, the global health care equipment & supplies market is forecast to have a value of $479,482.6 million, an

increase of 32.5% since 2013.

The compound annual growth rate of the market in the period 2013–18 is predicted to be 5.8%.

Table 4: Global health care equipment & supplies market value forecast: $ million, 2013–18

Year $ million € million % Growth

2013 361,766.8 272,394.2 4.8%

2014 378,636.1 285,096.1 4.7%

2015 403,230.6 303,614.7 6.5%

2016 427,065.7 321,561.4 5.9%

2017 452,876.5 340,995.8 6.0%

2018 479,482.6 361,029.0 5.9%

CAGR: 2013–18 5.8%


Figure 4: Global health care equipment & supplies market value forecast: $ million, 2013–18




FIVE FORCES ANALYSIS

The health care equipment & supplies market will be analyzed taking manufacturers of health care equipment as players.

The key buyers will be taken as hospitals, clinics, outpatient facilities, and medical offices, and raw material producers as

the key suppliers.

Summary

Figure 5: Forces driving competition in the global health care equipment & supplies market, 2013


The global health care equipment & supplies market is characterized by the presence of large, international incumbents,

which increases rivalry somewhat.

The number of buyers present within the global health care equipment and supplies market is limited, which serves to

increase buyer power and negotiating position.

Market players are heavily dependent upon suppliers of raw materials. Suppliers are typically large scale companies that

can negotiate on price and the quality of inputs is of paramount importance, which strengthens their position.

There exist high entry barriers, often imposed by leading incumbents, but also due to the stringent hygiene and quality

demands of buyers. A proven track record is highly advantageous.

Rivalry is alleviated slightly by the fact that main players have diversified operations. However, to succeed within this

market, extensive research capabilities, as well as the ability to meet stringent government regulations are essential.



Buyer power

Figure 6: Drivers of buyer power in the global health care equipment & supplies market, 2013


The number of buyers within the global health care equipment and supplies market is limited, meaning that leading

incumbents are competing with each other to assure purchases. This means buyers hold a certain degree of power over

market players.

As buyers are typically small in size compared to main players, they can negotiate a better price using group purchasing,

which enhances buyer power further. Group purchasing organizations (GPOs) such as Amerinet and MedAssets are

therefore commonplace, particularly in the US. For example the former states that its members saved $1.19bn by

purchasing through its network of contacts in 2012.

Switching costs in this market are negligible due to the undifferentiated nature of products and the fact that many of the

major manufacturers provide for all areas of healthcare. Furthermore, the advancement of e-procurement systems

means that buyers are more knowledgeable about products and therefore prices. This increases competition between

market players and serves to increase buyer power. Buyers, however, seek high quality and reliability, which reduces

their power somewhat as market players can increase their prices accordingly.

Recent economic difficulties have seen disposable incomes shrink meaning that consumers are becoming more cost-

conscious, resulting in a decreasing number of surgical procedures and pricing pressures. This is particularly true in

countries where the public sector accounts for a large amount of healthcare expenditure and austerity measures have

been implemented. Consumer habits have therefore altered with many opting for cheaper over-the-counter products

increasing the pressure on manufacturers further.

Traditionally, branding had little impact upon this market. However, players are now aiming to strengthen their brands in

order to gain a greater market share. For example, in September 2012, Toshiba Medical Systems announced it had

signed a deal with Manchester United Football Club to provide medical equipment to the club's medical team. In sport,

the health and physical well-being of players is central to a team's success, and the trust of such a well-known club, it is

hoped, will strengthen the Toshiba brand.

Overall, buyer power is assessed as moderate.



Supplier power

Figure 7: Drivers of supplier power in the global health care equipment & supplies market, 2013


Raw materials manufacturers constitute the main suppliers to the health care equipment & supplies market.

In most cases, market players will source inputs from a variety of suppliers to reduce their dependence on a single

provider; however, in some cases, players are reliant upon one company for specific materials. Such suppliers are

usually large in nature due to the inherent large-scale operation involved in production. They are therefore able to

negotiate on price, which strengthens their position somewhat.

However, there is little differentiation in supply materials, meaning that market players can opt for cheaper deals with

varying companies, although given the importance of hygiene and safety in this market, suppliers with a proven record

may hold an advantage over those that do not, regardless of price. The presence of contracts usually indicates penalties

upon termination of a contract, imposing switching costs and increasing supplier power to some extent.

Raw materials are subject to fluctuations in price, which can negatively affect a company’s profitability. Market players

may purchase inputs on the open market, but doing so they lose control over prices.

Overall, supplier power in this market is moderate.



New entrants

Figure 8: Factors influencing the likelihood of new entrants in the global health care equipment & supplies market, 2013


The market is dominated by large scale international incumbents that benefit from scale economies, meaning they can

negotiate heavily on price.

Research is highly important for players’ revenues, as buyers are increasingly cost aware, meaning they are unlikely to

invest in equipment or supplies which offer little improvement over previous models. In addition to this, players must

adapt to constant technological and scientific advancements in order to compete successfully with others. Large scale

operations and strong research and development centers allow such players to easily expand into various geographical

areas and tap a share of emerging markets.

There is a large degree of regulation present within the market concerning product labeling requirements, promotion and

marketing schemes, quality system requirements, record keeping and medical device reporting. New entrants must gain

approval for a new product through ensuring third-party sponsors of the cost effectiveness of the product in question.

This will typically involve a time consuming and expensive clinical trial. Furthermore, increased government regulation

could increase compliance costs which will, in turn, reduce revenues.

However, brand identity in this market is minimal, with customers more concerned about quality and price, although the

major players are making efforts to change this via brand strengthening. Low switching costs, easily accessible suppliers

and distribution channels also prove enticing for new players.

Overall, there is a moderate likelihood of new entrants to the market.



Threat of substitutes

Figure 9: Factors influencing the threat of substitutes in the global health care equipment & supplies market, 2013


There are no viable substitutes to health care equipment and supplies due to their specialized nature. The threat of

substitutes in this market is correspondingly very weak.



Degree of rivalry

Figure 10: Drivers of degree of rivalry in the global health care equipment & supplies market, 2013


The health care equipment & supplies market is characterized by the presence of large scale international incumbents,

increasing the level of rivalry. Such companies are large in nature, and therefore benefit from scale economies, meaning

they can negotiate more intensely on price. Such players are able to differentiate themselves through extensive research

and development, reducing rivalry to an extent, although it should be noted that many of the major players manufacture

the same, wide range of expenditure.

Additionally, many players operate in a wide range of markets. For example, Johnson & Johnson stands as one of the

most diverse health care companies, both in terms of its pharmaceutical portfolio, but also due to its large medical

devices & diagnostics and consumer health divisions. The company is additionally strengthened by its large, international

sales force. This diversification reduces the company's dependence upon any one area of operations, reducing rivalry.

The same is also true of players such as GE, Samsung, Siemens, & Toshiba. A strong product portfolio increases

financial stability, and provides the necessary funds to complete more research and expand operations into other

geographical regions. Fairly strong growth in recent years helps to reduce rivalry to some degree.

Overall, rivalry within the market is moderate.



LEADING COMPANIES

Abbott Laboratories

Table 5: Abbott Laboratories: key facts

Head office: 100 Abbott Park Road, Abbott Park, Illinois 60064 6400, USA

Telephone: 1 847 937 6100

Website: www.abbott.com

Financial year-end: December

Ticker: ABT

Stock exchange: New York

SOURCE: COMPANY WEBSITE M A R K E T L I N E

Abbott Laboratories (Abbott or 'the company') is a global health care company engaged in the discovery, development,

manufacture and marketing of branded generic pharmaceuticals, nutritional products, medical devices, and diagnostics.

The company has a presence in several countries, with major operations in the US, the Netherlands, Germany, Japan,

Italy, France, Canada, the UK and Spain.

In FY2013, the company operated through four segments: nutritional products, established pharmaceutical products,

diagnostic products, and vascular products. In addition, the company also supplies products under its 'other business'.

The nutritional products segment manufactures, markets, and sells a range of pediatric and adult nutritional products.

These products are sold under various brands, which include Similac, Isomil, Gain, Grow, Alimentum, Jevity, Glucerna,

Osmolite, Oxepa, Freego, Nepro, Ensure, Hunger Smart, ProSure, PediaSure, PediaSure Sidekicks, EleCare, Juven,

Abound, and Pedialyte.

The company's established pharmaceutical products segment manufactures products, which include a broad line of

branded generic pharmaceuticals manufactured, marketed, and sold outside the US. The segment consists of brands

including Creon, Biaxin, Klacid, Klaricid, Influvac, Serc, Brufen, Synthroid, Duspata, Dicetel, Duphaston, Adomet,

Heptral, Transmetil, Samyr, Donamet, Duphalac, Lipanthyl, TriCor, Teveten, and Teveten Plus. Certain products are co-

marketed or co-promoted with other companies.

In July 2014, Abbott sold its branded generics pharmaceuticals business in the developed markets to Mylan. The

business includes a portfolio of approximately 100 specialty and branded generic pharmaceutical products in over 40

countries primarily in Europe, Japan, Canada, Australia and New Zealand. This transaction is expected to close in first

quarter of 2015.

The diagnostic products segment is engaged in manufacturing, marketing, and selling of diagnostic systems and tests.

These products are sold under various brands which include ARCHITECT, AxSym, Abbott Prism, m2000, Vysis, i-STAT

and Cell-Dyn.

The vascular products segment manufactures, markets, and sells a range of coronary, endovascular, vessel closure, and

structural heart devices for the treatment of vascular diseases. Its major brands include Xience Xpedition, Xience Prime,

Xience nano, Xience V, Multi-Link, TREK, Voyager, Elite, StarClose, Perclose, Acculink/Accunet, MitraClip, Absorb and

Xact/Emboshield.

Besides its four reportable business segments, Abbott also sell products, which fall under 'other business'. The

company's 'other business' includes blood glucose monitoring meters, test strips, data management software and

accessories for people with diabetes.



Key Metrics

The company recorded revenues of $21,848m in the fiscal year ending December 2013, an increase of 1.6% compared

to fiscal 2012. Its net income was $2,576m in fiscal 2013, compared to a net income of $5,963m in the preceding year.

Table 6: Abbott Laboratories: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 30,764.7 35,166.7 21,407.0 21,494.0 21,848.0

Net income (loss) 5,745.8 4,626.2 4,728.4 5,962.9 2,576.0

Total assets 52,581.6 60,573.9 60,276.9 67,234.9 42,953.0

Total liabilities 29,517.9 37,808.7 35,750.7 40,421.7 17,679.0

Employees 72,868 91,440 91,922 91,000 69,000

SOURCE: COMPANY FILINGS M A R K E T L I N E

Table 7: Abbott Laboratories: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 18.7% 13.2% 22.1% 27.7% 11.8%

Revenue growth 4.2% 14.3% (39.1%) 0.4% 1.6%

Asset growth 24.0% 15.2% (0.5%) 11.5% (36.1%)

Liabilities growth 18.5% 28.1% (5.4%) 13.1% (56.3%)

Debt/asset ratio 56.1% 62.4% 59.3% 60.1% 41.2%

Return on assets 12.1% 8.2% 7.8% 9.4% 4.7%

Revenue per employee $422,198 $384,588 $232,882 $236,198 $316,638

Profit per employee $78,852 $50,593 $51,440 $65,526 $37,333




Figure 11: Abbott Laboratories: revenues & profitability


Figure 12: Abbott Laboratories: assets & liabilities




Johnson & Johnson

Table 8: Johnson & Johnson: key facts

Head office: One Johnson & Johnson Plaza, New Brunswick, New Jersey 08933, USA

Telephone: 1 732 524 0400

Website: www.jnj.com

Financial year-end: December

Ticker: JNJ



Johnson & Johnson (J&J or 'the company') is a global manufacturer of health care products as well as a provider of

related services. The company conducts its international business through more than 275 operating companies across

the globe. It has major operations in the Americas, Europe, Asia Pacific and Africa.

The company operates through three segments: medical devices and diagnostics, pharmaceuticals, and consumer.

J&J's medical devices and diagnostics segment manufactures and markets products used by physicians, nurses,

therapists, hospitals, diagnostic laboratories and clinics. These include products to treat cardiovascular diseases;

orthopedic and neurological products; blood glucose monitoring and insulin delivery products; general surgery,

biosurgical, and energy products; professional diagnostic products; infection prevention products; and disposable contact

lenses. The company's products are distributed to wholesalers, hospitals and retailers. In June 2014, J&J completed the

divestiture of its Ortho-Clinical Diagnostics business, a global provider of solutions for screening, diagnosing, monitoring

and confirming diseases, to The Carlyle Group for approximately $4bn.

The pharmaceutical segment produces and markets products in the following therapeutic areas: anti-infective,

antipsychotic, contraceptive, gastrointestinal, hematology, immunology, infectious diseases, metabolic, neurology,

oncology, pain management, thrombosis and vaccines. Key products in the pharmaceutical segment include: Remicade

(infliximab), for the symptoms of Crohn's disease, ankylosing spondylitis, psoriatic arthritis, ulcerative colitis, chronic

severe plaque psoriasis and rheumatoid arthritis; Stelara (ustekinumab), a treatment for adults with moderate to severe

plaque psoriasis; Simponi (golimumab), a treatment for adults with moderate to severe rheumatoid arthritis, active

psoriatic arthritis, and active ankylosing spondylitis; Velcade (bortezomib), a treatment for multiple myeloma; Zytiga

(abiraterone acetate), a treatment for metastatic castration-resistant prostate cancer; Prezista (darunavir), Intellence

(etravirine) and Edurant (rilpivirine), treatments for HIV/AIDS; Incivo (telaprevir), for the treatment of hepatitis C; Nucynta

ER (tapentadol) extended release tablets, a treatment for moderate to severe chronic pain in adults and neuropathic pain

associated with diabetic peripheral neuropathy in adults; Invega Sustenna (paliperidone palmitate), for the acute and

maintenance treatment of schizophrenia in adults; Invega (paliperidone) extended-release tablets, for the treatment of

schizophrenia and schizoaffective disorder; Risperdal Consta (risperidone), a treatment for the management of Bipolar I

Disorder and schizophrenia; Xarelto (rivaroxaban), an oral anticoagulant for the prevention of thrombosis following total

hip or knee replacement surgery, for the prevention of stroke in patients with atrial fibrillation, for the treatment of

pulmonary embolism (PE) or deep vein thrombosis (DVT) or to reduce the risk of recurrence of DVT or PE following an

initial six months of treatment for acute venous thromboembolism; Procrit (epoetin alfa, sold outside the US as Eprex), to

stimulate red blood cell production; Concerta (methylphenidate HCl) extended-release tablets CII, a treatment for

attention deficit hyperactivity disorder; and Aciphex EX /Pariet , a proton pump inhibitor co-marketed with Eisai. J&J's

products are distributed directly to retailers, wholesalers and health care professionals.



J&J's consumer segment develops, manufactures and markets products for baby care, skin care, oral care, wound care

and women's health care. It also offers nutritional and over-the-counter (OTC) pharmaceutical products. Its major brands

include: Aveeno (skin care products); Band-Aid (adhesive bandages); Carefree (panty liners); Clean & Clear (skin care

products for teens); Johnson's baby and adult lines of products; Motrin IB (ibuprofen products); Neutrogena (skin and

hair care products); RoC (skin care products); Pepcid AC (acid controller); Listerine and Reach (oral care products);

Dabao (moisturizers); Zyrtec (allergy products); Splenda (sweetener); Stayfree (sanitary protection products); and

Tylenol (acetaminophen products). The company sells its products to wholesalers and directly to independent and chain

retail outlets throughout the world.

Key Metrics

The company recorded revenues of $71,312m in the fiscal year ending December 2013, an increase of 6.1% compared

to fiscal 2012. Its net income was $13,831m in fiscal 2013, compared to a net income of $10,510m in the preceding year.

Table 9: Johnson & Johnson: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 61,897.0 61,587.0 65,030.0 67,200.0 71,312.0

Net income (loss) 12,266.0 13,334.0 9,672.0 10,510.3 13,831.0

Total assets 94,682.0 102,908.0 113,644.0 121,347.0 132,683.0


Employees 115,500 114,000 117,000 127,600 128,100


Table 10: Johnson & Johnson: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 19.8% 21.7% 14.9% 15.6% 19.4%

Revenue growth (2.9%) (0.5%) 5.6% 3.3% 6.1%

Asset growth 11.5% 8.7% 10.4% 6.8% 9.3%

Liabilities growth 4.0% 5.1% 22.1% (0.1%) 3.7%

Debt/asset ratio 46.6% 45.0% 49.8% 46.6% 44.2%

Return on assets 13.7% 13.5% 8.9% 8.9% 10.9%






Figure 13: Johnson & Johnson: revenues & profitability


Figure 14: Johnson & Johnson: assets & liabilities




Medtronic, Inc.

Table 11: Medtronic, Inc.: key facts

Head office: 710 Medtronic Parkway, Minneapolis, Minnesota 55432 5604, USA

Telephone: 1 763 514 4000

Website: www.medtronic .com

Financial year-end: April

Ticker: MDT



Medtronic (or 'the company') is a diversified medical device company. It develops and markets products and therapies in

the areas of cardiac rhythm disorders, cardiovascular diseases, neurological disorders, spinal conditions and

musculoskeletal trauma, urological and digestive disorders, diabetes, and ear, nose and throat conditions. Medtronic

serves physicians, clinicians and patients in more than 140 countries.

The company operates through two segments that manufacture and sell device-based medical therapies: cardiac and

vascular group; and restorative therapies group.

The cardiac and vascular group is comprised of following businesses: cardiac rhythm disease management (CRDM),

coronary, endovascular therapies, and structural heart.

Medtronic's CRDM business develops, manufactures, and markets products for the diagnosis, treatment, and

management of heart rhythm disorders and heart failure. The company provides CRDM products such as implantable

devices, leads and delivery systems, products for the treatment of atrial fibrillation (AF), and information systems for the

management of patients with CRDM devices.

The coronary business is comprised of the company's therapies to treat coronary artery disease (CAD) and

hypertension. Products contained within this business include coronary stents and related delivery systems, along with a

line of balloon angioplasty catheters, guide catheters, guidewires, diagnostic catheters and accessories.

The endovascular and peripheral business consists of a line of products and therapies to treat abdominal and thoracic

aortic aneurysms and peripheral vascular disease (PVD). Products include endovascular stent graft systems, embolic

protection systems, and stent systems for the treatment of narrowed iliac arteries.

The structural heart business offers a line of products and therapies to treat heart valve disorders, including products for

the repair and replacement of heart valves, perfusion systems, positioning and stabilization systems for beating heart

revascularization surgery, and surgical ablation products.

The restorative therapies group segment consists of four businesses: spinal, neuromodulation, diabetes and surgical

technologies.

The spinal business develops, manufactures, and markets a line of medical devices and implants used in the treatment

of the spine and the musculoskeletal system. Its products and therapies treat a variety of conditions affecting the spine,

including degenerative disc disease, spinal deformity, spinal tumors, fractures of the spine, and stenosis. The spinal

business also provides biologic solutions for the dental and orthopedic markets.

The neuromodulation business develops, manufactures, and markets medical devices for the treatment of chronic pain,

common movement disorders, spasticity, and urologic and gastrointestinal disorders. Products under this business

include neurostimulation systems for chronic pain; implantable drug delivery systems for pain management; and deep

brain stimulation systems for movement disorders. It also offers urology, and gastroenterology devices.



Medtronic's diabetes business develops, manufactures and markets advanced, integrated diabetes management

solutions that include insulin pump therapy systems, continuous glucose monitoring (CGM) systems, and therapy

management software.

The surgical technologies business develops, manufactures and markets products and therapies to treat diseases and

conditions of the ear, nose and throat (ENT), and certain neurological disorders. In addition, the business provides

image-guided surgery and intra-operative imaging systems that facilitate surgical planning during precision cranial,

spinal, sinus, and orthopedic surgeries.

Key Metrics

The company recorded revenues of $16,590m in the fiscal year ending April 2013, an increase of 2.5% compared to

fiscal 2012. Its net income was $3,467m in fiscal 2013, compared to a net income of $3,617m in the preceding year.

Table 12: Medtronic, Inc.: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 14,599.0 15,392.0 15,508.0 16,184.0 16,590.0

Net income (loss) 2,169.0 3,099.0 3,096.0 3,617.0 3,467.0

Total assets 23,661.0 28,090.0 30,675.0 33,083.0 34,794.0


Employees 38,000 43,000 45,000 45,000 46,000


Table 13: Medtronic, Inc.: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 14.9% 20.1% 20.0% 22.3% 20.9%

Revenue growth 8.0% 5.4% 0.8% 4.4% 2.5%

Asset growth 6.6% 18.7% 9.2% 7.9% 5.2%

Liabilities growth 1.4% 24.5% 9.3% 8.6% 1.0%

Debt/asset ratio 45.7% 47.9% 47.9% 48.3% 46.3%

Return on assets 9.5% 12.0% 10.5% 11.3% 10.2%






Figure 15: Medtronic, Inc.: revenues & profitability


Figure 16: Medtronic, Inc.: assets & liabilities




Siemens Healthcare

Table 14: Siemens Healthcare: key facts

Head office: Henkestrasse 127, D-91052 Erlangen, DEU

Telephone: 49 69 797 6602

Website: www.healthcare.siemens.com

Financial year-end: September


Siemens Healthcare (or 'the sector'), a medical business arm of Siemens, develops, manufactures and markets

diagnostic and therapeutic systems and devices, as well as information technology (IT) systems for clinical and

administrative purposes. The sector has its presence in several countries in Europe, Americas, Asia, Africa and in

Australia.

The sector operates through four business divisions: imaging & therapy systems, clinical products, diagnostics, and

customer solutions.

The imaging & therapy systems division provides medical devices for diagnostic imaging and for image-guided therapies.

Imaging equipment includes computed tomographs, magnetic resonance imaging equipment, positron emission

tomography and angiography systems. Image-guided therapies mainly comprise angiography systems for minimally

invasive procedures and computed tomographs in radiation therapy planning.

The clinical products division is mainly comprised of the sector's business with ultrasound and X-ray equipment including

mammography. In addition, it focuses on the development of cost-efficient, less complex equipment that meets essential

customer requirements, particularly in emerging economies. The clinical products division also comprises the internal

supplier components and vacuum technology which provides components to the imaging & therapy systems division.

The diagnostics division offers products and services in the area of in-vitro diagnostics. The division's product portfolio

represents a range of diagnostic testing systems and consumables, including clinical chemistry and immunodiagnostics,

molecular diagnostics (testing for nucleic acids), hematology, hemostasis, microbiology, point-of-care testing and clinical

laboratory automation solutions.

The sector's customer solutions unit provides hospital information technology systems, which is responsible for sector's

service business and customer relationship management on a global level. The unit also provides audiology solutions

(hearing aids) to its customers.

Key Metrics

The company recorded revenues of $18,081m in the fiscal year ending September 2013, a decrease of .2% compared to

fiscal 2012. Its net income was $2,719m in fiscal 2013, compared to a net income of $2,409m in the preceding year.



Table 15: Siemens Healthcare: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 15,832.6 16,412.7 16,615.8 18,109.2 18,081.3

Net income (loss) 1,924.8 992.9 1,770.8 2,409.3 2,718.6

Total assets 17,008.7 15,865.8 14,952.5 15,606.9 14,632.6

Employees 48,000 49,000 51,000 51,000 52,000


Table 16: Siemens Healthcare: key financials (€)

€ million 2009 2010 2011 2012 2013

Revenues 11,927.0 12,364.0 12,517.0 13,642.0 13,621.0

Net income (loss) 1,450.0 748.0 1,334.0 1,815.0 2,048.0

Total assets 12,813.0 11,952.0 11,264.0 11,757.0 11,023.0


Table 17: Siemens Healthcare: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 12.2% 6.0% 10.7% 13.3% 15.0%

Revenue growth 6.8% 3.7% 1.2% 9.0% (0.2%)

Asset growth (3.3%) (6.7%) (5.8%) 4.4% (6.2%)

Return on assets 11.1% 6.0% 11.5% 15.8% 18.0%






Figure 17: Siemens Healthcare: revenues & profitability




APPENDIX

Methodology MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-

checked and presented in a consistent and accessible style.

Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by

analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases

provide the foundation for all related industry profiles

Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company

profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market

overview

Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each

definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the

market and our clients

Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and

trends

MarketLine aggregates and analyzes a number of secondary information sources, including:

- National/Governmental statistics

- International data (official international sources)

- National and International trade associations

- Broker and analyst reports

- Company Annual Reports

- Business information libraries and databases

Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data to

be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can

then be refined according to specific competitive, regulatory and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date



Industry associations

Eucomed

Place des Maïeurs 2, 1150 Brussels, BEL

Tel.: 32 2 772 2212

Fax: 32 2 771 39 09

www.eucomed.be

Consumer Healthcare Products Association 900 19th Street, NW, Suite 700, Washington, DC 20006, USA

Tel.: 1 202 429 9260

Fax: 1 202 223 6835

www.chpa-info.org

The Japan Federation of Medical Devices Associations(JFMDA) 8F, Iidabashi Square Bldg., 3-2, Shimomiyabicho, Shinjuku-ku, Tokyo 162-0822, JPN

Tel.: 81 3 5225 6234

Fax: 81 3 3260 9092

www.jfmda.gr.jp

Related MarketLine research

Industry Profile

Health Care Equipment & Supplies in Asia-Pacific

Health Care Equipment & Supplies in Europe

Health Care Equipment & Supplies in the United States

Health Care Equipment & Supplies in Germany

Health Care Equipment & Supplies in China

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