Healthcare TechnologyEgyptian Market Outlook

Usama Aly Hassan, CCE, EMDCo-Founder and CEO

Egyptian Biomedical Engineering Group

Content1. Healthcare Technology Definition2. Healthcare technology through History3. Healthcare Technology and Innovation4. Global Medical Devices market 5. Egyptian Market Outlook

A. Environment scan and Economic factorsB. Market Structure and Economic Moats C. Market Opportunities D. Market Development

Healthcare TechnologyThe healthcare technology is generally defined as Any intervention that may be

used for: 1. Prevention, 2. Diagnosis, 3. Treatment, 4. Rehabilitation

The healthcare technology can be segmented into:5. Medical Devices6. Procedures 7. Pharmaceuticals8. Organizational Systems

The healthcare technology Aiming to9. Enhancement10. Effectiveness11. Productivity12. Cost Reduction

The artificial big toe is carved from wood and attached to foot by leather wrapping for cosmetic and function. Dental reconstructive work (bridge) . dated to 2000 BC.Egyptian Museum in CairoA squatting woman giving birth sitting on birthing chair, assisted by two goddessesSurgical instruments 600-200BC from bronze

Kohl for disinfection and treatment

Edwin papyriEbers papyri

All of the above and more based on innovations

Healthcare technology Patents And Innovations

The medical areas with unmet needs:1. Oncology2. Cardiovascular3. Orthopedic 4. Neurological diseases 5. Diabetes

Sour

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orld

Inte

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rty

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rs ,

U.S.A42%

Japan16%

Others11%

Germany7%

China4%

Swizerland3%

United Kingdom

3%

Republic of Korea

3%

France2%

Netherlands1%

Sweden1%

Canda1%

Russian Fedration1%

Australia1%

Italy1% Finland

0%

WIPO, 2011

Global medical devices market

The global market share of medical devices by sector.1. Diagnostic imaging equipment (26%)2. Electro medical equipment (30%)3. Consumables (15%)4. Orthopedic and Prosthetic devices (13%)

Other Products30%

Diagnostic equipment26%

Consumables15%

Or-thopaedic and pros-thetic de-

vices 13%

Patient Aids10%

Dental Products6%

Global medical devices market

CAGR2.771,9

5.83.6

Medical Devices Market: Forecast for GrowthRegion 2009 2010 2011 2012 2013 %Americas 102.4 107.1 112.1 117.4 122.8 43Asia/Pacific 42.5 46.1 49.9 54.3 58.9 21Central/E Europe 10.3 11.3 12.4 13.6 14.8 5M East/Africa 5.7 6.0 6.3 6.7 7.0 3Western Europe 62.3 66.7 71.6 76.9 82.5 29Total 223.2 237.2 252.3 268.9 286.0Source: Medical Market Fact Book

2009 2010 2011 2012 20130

20

40

60

80

100

120

140

102.4107.1

112.1117.4

122.8

42.5 46.1 49.954.3

58.9

10.3 11.3 12.4 13.6 14.8

5.7 6 6.3 6.7 7

62.3 66.7 71.676.9

82.5AmericasAsia/PacificEstern Europe M East/Africa Europe

The African Medical Device Market: Facts and Figures 2010

M US$ Import670.1 South Africa538 Egypt307.7 Algeria171.1 Morocco145.4 Tunisia141.1 Libyan119.4 Nigeria87.8 Angola56.2 Sudan50.2 Kenya2154.5 Total

M US$ Export111.5 South Africa45 Egypt8.1 Mauritius14.7 Morocco98.8 Tunisia0.9 Libyan1.7 Swaziland1.3 Madagascar0.9 Sierra Leone4.1 Kenya282 Total

African medical devices market

• Environment scan and Economic factors• Market Structure and Economic Moats • Market Opportunities • Market Development

Egyptian Market Outlook

Economic Technology Political & Legal Sociocultur

GDP Gross Domestic Product

-Interest rate-inflation rate

-Unemployment-Wage

-Energy availability cost

Total spending in R&D Patent protection

-New product -New development

-technology transfer

Antitrust regulation Environment protection

-Low/Tax- foreign trade reg.

Life style Customer expectation-

Life expectancy- Birth rates Health care

- Level of education

4 forces have changed and will continue to change at a faster rate.

• Political stability and Economic growth• Consumer incomes and ability to purchase health services• Population growth • Extended life expectancy• Emergence of advanced medical treatments and technologies

Stem cellsNanotechnology

Environment scan and Economic factors

Egypt’s Political and Economic Map

Source: AAIM

المباشر األجنبي االستثمار

األمن إعادة

التضخم

المنتخب الرئيس

الدولي النقد صندوق قرض جنيه العملة قيمة تخفيض الجيوسياسية المخاطر

االحتياطيات صافي القانوني اإلطار

الطاقة نقص سياحة االئتماني التصنيف

الدستور على دور الموافقة المدنية السياسي SCAFإنهاء الحكومة

األجور هيكلة اإلعانات بطالةإعادة هيكلة إعادة

اقتصادي برنامج وتنفيذ صياغة

لبرلمان االنتخاباات إعادة

Environment scan and Economic factors

Market structure and Economic MoatsStructure and Nature• Egypt’s medical device market is the second largest in the Middle

East.

• Medical devices contributed $538 million dollars to GDP(0.002%)اإلجمالي المحلي in 2011 which was 5.1% of total healthcare الناتج

spending , In per capita US$ 6.

• The Ministry of Health operates ~ 1500 hospitals which correspond to a supply of 60% of beds. Universities, the Army and the private sector constitute the other 40%.

Egyptian Market structure and Economic • Recent reports have indicated that the Egyptian government

prefers investments in preventative medicine which is a specialty catered to medical devices.

• With the strong demand and less barriers to market, the medical device sector will be subjected for a substantial economic growth in the near future.

• The World Bank report 32% of the Egyptian population is under 14 and life expectancy for Egyptians has increased from 69 to 73 which need for investment in the healthcare industry.

• According to the World Bank, less than 5% of total investments are allocated toward health services

MARKET

Driving Forces

Egyptian Market structure and Economic Moats

Business Contacts

Increasing technical complexity

Low-bidding competitors

Rising

Overhead

Risingcustomer expectations

Aggressivecompetitor modes

Strategy and Competition

Egyptian Market Sectors Opportunities

Unmet needs opportunities in the following subsectors: • Oncology and high-tech radiological equipment • Highly specialized disposables • High-tech surgical and medical equipment • Software for hospital management/network • ICU monitoring equipment • Sophisticated laboratory and scientific equipment • Mobile clinics

Market Opportunities Ratings 2 Consulting Services 3 Veterinary1 Used/Equipment 3 Laboratory Equipment 1 Health IT 3 Dental 3 Clinical Chemistry and Diagnostics 3 Bio Medical 2 Medical Capital Equipment 4 Medical Devices Surgical 3 Medical Devices Orthopedic 3 Medical Devices Monitoring Equipment 3 Medical Devices Electromedical

Rates Definition1 Little to no probability of success 2 More challenges than opportunities 3 More opportunities than challenges 4 Very high probability of success

Market DevelopmentImport and Export

Market DevelopmentManufacturing for Global

Market Development

1- Broad Knowledge about the business 2- Global Market Driven not production Driven 3-World as a Market place not country Market place4- Non-Traditional Markets (Stem Cell , Nanotechnology )5- Environmental Concerns and Carbon Footprint

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