DIAGNOSTICS-IMPACT ON THE PREMIUM CHANNEL: MARKET OVERVIEW

Richard Lindstrom, MD

OPHTHALMIC DIAGNOSTIC EQUIPMENT MARKET AND OPPORTUNITIESRichard L. Lindstrom, MDOphthalmology Innovation SummitMay 5, 2016

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OPHTHALMIC DIAGNOSTIC MARKET GLOBAL REVENUES

• Market Grew an Estimated 8.9% in 2015

• One of Fastest Growing Ophthalmic Market Segments

• Expected to Grow at 4.1 Percent Through 2020

• Rapid Innovation in All Segments

• Low Regulatory Barriers

• Rapid Advances in Enabling Technologies

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DIAGNOSTIC EQUIPMENT MARKET BY SEGMENT• Almost 700 Diagnostic Products

• 85 Manufacturers

• 126 Products Discontinued in 2015

• 80 New Products Introduced

• 37 Product Categories

• 4 Key Product Groups Account for More than 50% of Revenues

• OCT 18%

• Fundus Imaging 14%

• Or Microscopes 13%

• Optical Biometry 6%

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2015 REVENUE GROWTH BY SEGMENT

• Total Market Growth 8.9% or $317 Million

• Five Key Product Groups Account for 68% of Growth

• Fundus Imaging +22% or $77 Million

• OCT +13% or $63 Million

• OR Microscopes +18% or $58 Million

• Optical Biometry +8.5% or $15 Million

© 2016, Market Scope, LLC

FUNDUS IMAGING

• Moving Beyond Conventional Photography

• Leveraging Technology Advances

• Microprocessors• Data Storage and Transfer• Improved Image Capture Precision• Image Registration and Analysis• Improved Batteries

• Many New Advances Leading to Proliferation of Products

• Widefield imaging• Automated Alignment and Capture• Combination Units such as OCT/Fundus Image or

Perimetry/Fundus Provide Data Registration• Hand -held Devices for Screening

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OPTICAL COHERENCE TOMOGRAPHY• Expanding Precision and Analytics

• Leveraging Technology Advances

• Microprocessors• Data Storage and Transfer

• New Advances are Opening New Windows into Retina and Glaucoma Diseases and Treatments

• Expanding Precision• Specialized Applications-OCT Angiography,

Microscope with OCT Diagnostics, OCT for Biometers

• Lower Cost Devices for Screening• Ease of Use, Compact Design

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OPTICAL BIOMETRY • Need for Improvements

• Previous LASIK

• Advanced IOLs

• Expanding Precision and Analytics

• Leveraging Technology Advances

• Microprocessors and Image Capture

• OCT Technology, Scheimpflug Imaging

• Data Storage and Transfer

• Advances

• Improved Formulas

• Higher Precision Measurements

• Transfer of Data to OR Suite

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OR MICROSCOPES• Need for Improvements

• Integrated Diagnostics for Precision Surgery

• Improved Visualization

• Leveraging Technology Advances

• Microprocessors, Illumination, Display

• Advances in Diagnostics

• Data Storage and Transfer

• Advances

• Improved Optics, Illumination, Ergonomics

• Integrated Diagnostics

• Transfer of Data to Microscopes

© 2016, Market Scope, LLC

DIAGNOSTIC MARKET COMPETITORS

• Highly Competitive Market• Carl Zeiss Meditec-

Market Leader• 85 Manufacturers

• Low Barriers to Entry

• Many Technologies• Optics, Electronics,

Software, Laser, Ultrasound, Mechanical

2015 Ophthalmic Diagnostic

Market $3.1 Billion

© 2016, Market Scope, LLC

LOOKING FORWARD AT OPHTHALMIC DIAGNOSTICS• Diagnostics Increasingly Important

• Precision Surgery Requires Advanced Diagnostics• Specialized Pharmaceuticals and Drug Delivery Systems Require More Specific

Diagnosis• Record Keeping Requirements Dictate More Quantitative Data

• New Technology Creates Opportunities• Advances in Microprocessors, Operating Systems, Networking, Storage• Image Analytical Software Tracks Disease Progression and Compares Results Across

Tests• Handheld Technologies Leverage Development of Smaller Devices and Efficient

Communications of Test Results

• Globalization of Ophthalmology Creates an Increasingly Competitive Environment• Lower Cost • Rapid Innovation

© 2016, Market Scope, LLC