Point of Care Testing: Will the Benefits Overrule the

Challenges?

Rasika Ramachandran, Senior Research Analyst Life Sciences Healthcare - EIA

29th June 2010

2

Focus Points

• Introduction and Market Overview

• Applications of Point of Care Testing

• Segmentation

• Revenue forecasts

• Key Drivers

• Geographic Trends

• Industry Challenges and Strategic Recommendations

• Conclusion

3

Introduction and Market Overview

Market Development Market Maturity Market Decline

Diabetes

Cardiac Blood Gas and

Electrolytes

Haematology Coagulation Fertility

Infectious Disease

4

Applications of Point of Care Testing

HospitalSetting

Applications CommunitySetting

5

Market Segmentation

InfectiousDisease

Diabetes

Coagulation

CardiacBlood Gas

andElectrolytes

Haematology

Fertility

6

Revenue Forecasts

0

0.5

1

1.5

2

2.5

3

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Reven

ues (

$ B

illi

on

s)

0

2

4

6

8

10

12

14

Gro

wth

Rate

(%

)

$1.3 Billion @ 8.2 per cent

Source: Frost & Sullivan

7

Key Market Drivers

Driv

ers

Driv

ers

Quick turn

around time

Availability of POC

tests encourages

self-monitoring

of patients

Encouraging initiatives

from European

Governments aids

growth of the

POC testing market

Source: Frost & Sullivan

Development of an

increasing number of

POC test data management

and connectivity solutions

8

Geographic Trends

Move towards decentralisation of lab services in UK will lead

to greater uptake of POC tests here

Greater thrust from government agencies for

POC testing and the industrial sector acting on

cue to lead to POC market expansion here

Majority of the country still found to prefer traditional testing

methods to near patient testing, but a shift is

expected

Autonomously operating and unregulated

healthcare system poses a challenge for POC

suppliers in these regions

9

Industry Challenges and Recommendations

LowMediumHighInfatuation of senior physicians with conventional testing methods is a challenge for POC testing

market growth

LowMediumHighCost advantages of central laboratory testing versus

near patient testing is still a hindrance to its wider

adoption

LowMediumHighNeed for routine calibration of POC instrument is a

challenge for its uptake in the physician office

laboratory

MediumHighHighIntegrating Point of Care (POC) testing intoexisting infrastructure proves to be a challenging

task

5-7 Years3-4 Years1-2 YearsChallenge

10

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For Additional Information

Katja Feick

Corporate Communications

Healthcare

0049 (0) 69 7703343

katja.feick@frost.com

Noel Anderson

European Vice President

New Business Development

+44 (0)207 343 8389

noel.anderson@frost.com

Dr. Fiona Rahman

Program Manager

Clinical Diagnostics & Drug Discovery Healthcare

0207 343 8305

fiona.rahman@frost.com

Rasika Ramachandran

Senior Research Analyst

Life Sciences, Healthcare - EIA

+91-44-42044695

rasika.ramachandran@frost.com