DescriptionWhat strategies could new players use to enter the Point of Care market?
MICROFLUIDIC-BASED POINT OF CARE IS NOW A MUST-HAVE FOR DIAGNOSTIC COMPANIES. IS THE MERGERS & ACQUISITIONS SEASON OVER?
The Point of Care (POC) market’s contribution to in vitro diagnostic is poised to increase from 13% to 17% over the next five years, leading to a market of around $30B in 2019.
Different types of Point of Care tests are available on the market. Whereas simple lateral flow tests work perfectly without fluid management technology, microfluidics is necessary when test complexity increases. Indeed, microfluidics is an enabling technology allowing miniaturization and integration of laboratory protocols into portable devices.
POC testing based on microfluidic technology is expected to grow sharply, from $1.6B in 2013 to $5.6B in 2019, at a CAGR 2014 - 2019 of 23%. Major diagnostics companies (Alere, Abbott Point of Care, BD Diagnostics, Cepheid, Abaxis, etc.) have realized the potential of rapid molecular diagnostic testing. Indeed, several successful Point of Care products based on microfluidic technology have been launched in the past few years. Access to microfluidic technologies for diagnostic companies often passes through acquisitions, as this reduces the technology development risk and increases reactivity. The most recent acquisition was that of IQuum by Roche for $275M in April 2014.
This new Yole Développement report describes how mergers and acquisitions will decrease in volume but increase in value.
Based on a complete analysis of the last three years’ developments, we have been able to draw effective conclusions. Despite slower than expected growth in 2012, we explain why strong future growth is still likely.
THE MARKET IS HIGHLY SEGMENTED AND NO PRODUCTS FIT EVERY APPLICATION
POC 2014 report describes the following applications:
- Emergency testing
- Home tests
- Doctor’s office screening
- Decentralized hospital tests
- Environmental testing
- Forensic and military
- Third-world infections
Each of these are explained using market data, trends and drivers, key players and technologies used.
Also, growth perspectives and a value chain analysis are detailed for each application, and examples of innovative products are provided.
Moreover, this new report provides an overview of nearly 65 new technologies (commercialized or close to market), with information regarding commercial status, targeted application, technology description, sample volume, sensitivity level and target price.
WILL WE SEE A STANDARDIZATION OF MICROFLUIDIC DEVICE DESIGN?
Today’s microfluidic device market for Point of Care applications will increase three-fold over the next five years, reaching close to $600M by 2019. Of course, an increase in the adoption of microfluidic devices leads to the burning question of device design standardization.
Standardization is currently happening at the material level, i.e. the wide acceptance of polymer mainly due to cost pressure. But what’s the next step? In this report, Yole Développement provides theoretical scenarios for the potential design standardization of microfluidic chips, and also considers who could benefit from such standardization.
FROM MICROFLUIDIC COMPANY TO MAJOR DIAGNOSTIC COMPANY: HOW TO BRIDGE THE GAP?
Yole Développement report provides a detailed analysis of two tremendous success stories: Cepheid and Abaxis. How have these two companies, both specialized in microfluidic Point of Care technologies, been able to make hundreds of millions in revenue?
We also gives a list of pitfalls and challenges, and some advice to overcome them:
Technical and regulatory challenges
POC testing faces several technical requirements. Some of them are universal; for instance, specificity and sensibility must be higher than the reference method. Others, however, are highly dependent on the application.
Yole Développement value chain analysis provides an understanding of costs related to the different manufacturing steps (included packaging and quality control) in relation to the cost of the final test, which includes reagent, commercialization and distribution costs.
Supply & value chain challenges
We delve into the microfluidic supply chain, from R&D to commercialization and distribution. Also, we illustrate the main players for each material type, and their role in the supply chain.