Coland Holdings Limited

Coland Holdings Limited
TWSE 4144
Aug, 2013
Disclaimer
•
The presentation and the relevant information mentioned in this material, including
operating performance, financial performance and the business outlook, have been
compiled from both internal and external resources.
•
These forward looking statements involve known and unknown risks, uncertainties and
other factors, including price variation, competition, global economy, exchange rate
movement and market demand, which may cause actual results to differ materially
from those implied by such forward-looking statements.
•
This Presentation should not be considered as the giving of investment advice by the
Company or any of its shareholders, directors, officers, agents, employees or advisers.
Each party to whom this Presentation is made available must make its own
independent assessment of the Company after making such investigations and taking
such advice as may be deemed necessary. In particular, any estimates or projections or
opinions contained herein necessarily involve significant elements of subjective
judgment, analysis and assumptions and each recipient should satisfy itself in relation
to such matters.
•
The forward looking statements expressed in this material reflect the Company’s
current view about the future as of today. The Company is not responsible for any
updates if there are any changes in the future.
2
Contents
Value Creation – Coland Style
Executive Summary
Outstanding Performance
Strategy for Future Growth
Financial Performance
Appendix
3
Value Creation – Coland Style
• We are the only Taiwan-listed, Chinafocused company specializing in the
commercialization of healthcare products.
• We excel in product sourcing, registration,
branding and marketing.
• Our superior performance is led by an
industry-leading MNC-experienced, senior
management team.
• Our unique Taiwan market insights and
expertise enable us to source best-in-class
healthcare products.
• We are strongly committed to providing
superior returns to our shareholders.
4
Executive Summary
Outstanding Performance
Strategy for Future Growth
Strong Product
Sourcing and
Branding Capability
Superior
Performance
Relative to Peers
Experienced and
Stable International
Management Team
Expand and Diversify
Products
Extensive Sales
Network
Expand Network
Coverage
Build a Superior
Pipeline
Leverage Strengths of
Strategic Partners
5
Value Creation – Coland Style
Executive Summary
Outstanding Performance
Strategy for Future Growth
Financial Performance
Appendix
6
1. Strong Product Sourcing and Branding
Dedicated in
Partner with
Build and Develop
Work with National
Product
high quality
a Professional
Distributors to build
Sourcing
manufacturers
Promotion Team
National Network
Coland
Coland
Our sales and
Work with
collaborates with
cooperates with
marketing
nationwide top tier
leading healthcare
high quality GMP
professionals
distributors.
companies to
manufacturers.
promote products
develop promising
to China’s top
products.
hospitals.
Product
Development
Manufacturing
Sales & Marketing
Distribution
Coland’s Strategic Focus
7
Milestones Accomplished since IPO in 2011
New Products
Anti-HBV drug Lamivudine Yin Ding from Anhui Beike, COPD drug
Bi Duo Yi and Rhinitis drug Yi Qing from Zhejiang Xianju
More
Hospitals
Increased coverage to over 2000 hospitals across China
More MNC
products
In-licensed antibiotic injection Augmentin from GSK，Olbetam
(Acipimox) and Detrusitol from Pfizer
M&A
New Medical
Device
Partners
 Purchased and obtained 51% equity of Heilongjiang Tongze
Pharmaceutical company in July 2012
 Strategic investments in Taiwan/PRC companies
Agreed to purchase in HC-BIOS-Dental Implant, Suzhou Micro ClearOphthalmoscope, Rendu Biotechnology-IVD reagents
8
Current Main Products
Therapeutic Area
Year
Product
Generic name
Indications
2005
Dai Ding
Adefovir
Anti-HBV
2012
Yin Ding
Lamivudine
Anti-HBV/HIV
2011
Bi Duo Yi
Tiotropium
Bromide
COPD
Zhejiang’s Xianju
Pharmaceutical
2013
Yi Qing
Mometasone
Furoate Aqueous
Nasal Spray
Rhinitis
Zhejiang’s Xianju
Pharmaceutical
Immunosuppressant
2005
Shun You
Mycophenolate
Mofetil
Organ
Transplant
Zhejiang Jianfeng
Pharmaceutical
Antibiotics
2012
Augmentin
Amoxicillinand
Clavulanate
Bacteria
Infection
GSK
Cardiovascular
2013
Lezhiping
Olbetam
Treatment of
Hyperlipidemia
Pfizer
Urology
2013
Detrol
Tolterodine
Tartrate
Treatment of
OAB
Pfizer
Medical Device
2010
Sofamor
Spinal Implants
Spine Surgery
Medtronic
Hepatitis
Respiratory
Supplier
Tianjin Institute of
Pharmaceutical
Research
Anhui Biochem
United
Pharmaceutical Co
9
9
2. Extensive Sales Network
• Success of blockbuster drug Dai Ding led to completion of
a national sales network
• Existing hospital network covers 50% of Tier-III,
30% of Tier-II hospitals
Heilongjiang
• M&A to accelerate pace of expansion
Jilin
Liaoning
Xinjiang
Inner Mongolia
Beijing
Gansu
Hebei
Shanxi
Ningxia
Tianjin
Shandong
Qinghai
Shaanxi
Henan
Anhui
Tibet
Sichuan
8600+
2000+
400+
200+
10
1
Medical doctors
Hospitals
Sales representatives
Distributors
Sales offices
Joint Venture (Heilongjiang Tongze)
Jiangsu
Chongqing
Guizhou
Yunnan
Hubei
Hunan
Guangxi
Hainan
Shanghai
Zhejiang
Jiangxi
Fujian
Guangdong
Taiwan
Macao
Hong Kong
10
3. Experienced and Stable Int’l Mgmt Team
Key BOD Members captained the industry-leading Roche China Team in the late 1990s
William Keller
Leo Lee
Xiaoping Ye
Chairman
Co-Founder
and Director
Co-Founder
and Director
•
•
•
•
Over 30-years management
experience with Roche
Pharma Group
Held senior positions in
Roche South America and
Roche Asia
GM of Roche China from
1995 until his retirement in
2002
In 1999, was granted
Honorary Citizenship of
Shanghai and permanent
resident permit in China for
his outstanding
contributions
•
As Head of S&M at Roche
China, led company to win
No.1 market share in
prescription drugs in China
•
•
Strengths in sales and
management, especially the
ability to retain talent
•
•
Over 20-years career in
China pharma industry,
having worked at Johnson &
Johnson, Schering-Plough,
and Roche
•
•
Ex-Medical Director at
Roche China is key figure in
contributing to Coland’s
superior drug sourcing and
pipeline capability
Specializes in clinical trials
for CFDA approval. Chaired
2 Pegasys Global Phase III
studies for HBV at Roche
Keen eye for CFDA /
Market potential in drugs
Key to identifying strategic
partners for Coland
11
Experienced and Stable Int’l Mgmt Team
Leo Lee
CEO
Over 20-yrs experience
J&J, Schering-Plough, and Roche
Johua Tsao
CFO
20-yrs experience
Int’l FMCG companies in Greater China
P&G, Dairy Farm( N. Asia Finance Head)
Wenge Han
Medical Registration Director
Over 20-yrs experience
Sanofi, Eddingpharm HK, Servier
Tong Hu
Laura Guo, MD
Feng Wang
Sophie Jiang, MD
David Cheng
Jin-Fang Lou
National Sales & Marketing Director
15-yrs experience
Shanghai SA, Roche, Novartis
National Sales Director
Over 15-yrs experience
Tong Sheng, Roche
CIO
20-yrs experience
Boston Bioventure, YFY Bioventure Fund
External Affairs Director
20-yrs experience
Schering-Plough, Roche, NT Pharma
Medical Device Director
Over 20-yrs experience
Astra, Roche, Pharmacia & Upjohn
Product Development Director
Over 20-yrs experience
NT Pharma, Hangzhou Saili, Hainan Puli
12
4. Coland vs. GC and International Peers
Coland has superior ROE and the highest yield, yet trades at a significant discount to peers
(%)
ROE
30.0
2011
2012
25.0
20.0
Dividend Yield
(%)
7.0
2011
2012
6.0
5.0
4.0
15.0
3.0
10.0
2.0
5.0
1.0
-
Coland
(x)
Greater China peer International peer
median*
median**
35.0
Coland
P/E
Greater China peer International peer
median*
median**
2011
2012
30.0
25.0
20.0
15.0
10.0
5.0
0.0
Coland
Greater China peer median*
International peer median**
*Greater China peers: China Chemical & Pharma, CMS, Lee’s Pharm, Medigen, NT Pharma, Sihuan Pharm, Simcere Pharm, Sino Biopharm, Sinphar Pharm, TTY
Biopharm, and United Lab.
** International peers: Johnson & Johnson, Roche, and Pfizer.
13
Coland vs. GC and International Peers
Coland has superior FCF generation capability and high cash reserves
20
％
FCF Yield
2011
15
2012
10
5
0
-5
-10
-15
-20
-25
Coland
80
CMS
％
Sino
Biopharm
United Lab
Lee's
Pharma
Simcere
Roche
Pfizer
Net Cash/Total Assets
60
2011
40
2012
20
0
-20
-40
-60
Coland
CMS
Sino
United Lab
Biopharm
Lee's
Pharma
Simcere
Roche
Pfizer
14
Value Creation – Coland Style
Executive Summary
Outstanding Performance
Strategy for Future Growth
Financial Performance
Appendix
15
Core Strategy
Build the best GC healthcare commercialization platform
 Extensive sales network with national scale
 Proven track record: Top-3 share in Adefovir sales
Source high-quality Rx drugs and Medical Devices
 Prefer First-to-Market generics
 Multiple sources: China, Taiwan, and International
Diversify product portfolio
 Rich product offering: Rx drugs, Medical devices, IVD reagents
 Product in-licensing, strategic investments, JV, and M&A
16
1. Expand and Diversify Products
New
launches
Differentiation
Medical device
offerings
Operational
excellence
 At least one new product launch each year
 Sources: Class 1 New Drugs, FTM generics, MNC drugs
 New therapeutic areas: Oncology, Respiratory, Cardiovascular
 Orthopedic (trauma & joint), dental, ophthalmology, IVD reagents
 Solidify leadership in hepatitis and respiratory drugs
 Constant focus on high quality and best value proposition
17
Major New Products in 2013
Yi Qing
(Mometasone furoate)
Aqueous nasal spray
(Schering-Plough’s Nasonex®)
Lezhiping
(acipimox capsules)
Cholesterol Reduction
(Pfizer’s Olbetam®)
Detrol
(Tolterodine L-Tartrate Sustained
Release Capsules)
Overactive Bladder (OAB)
(Pfizer’s Detrusitol SR®)
In-Licensed from producer Zhejiang Xianju and
already included in the NRDL, Yi Qing targets the
over RMB 500m-a-year nasal spray market in
China.
Lezhiping is used for lowering high levels of
cholesterol and triglycerides in the blood. It is a
top-2 brand in China currently.
Market size is RMB 80m in annual sales in China,
according to IMS.
Detrol SR has been the world’s No.1 Rx drug for
OAB since its 1998 debut. China’s RMB45m OAB
market is projected to grow at a 25% CAGR
between 2011-2015. Pfizer’s Detrol market share
is 10% vs. 40% for Nanjing Meirui’s Tolterodine.
18
Dynamic Growth of Non-Daiding Sales
• Non-Daiding products grew from 0% in 2007 to 39.3% in 1H13
• Non-Daiding sales grew at a 83.3% CAGR in 2008-2012*
45.0%
39.3%
40.0%
35.0%
Non-Daiding sales
30.0%
25.9%
25.0%
20.0%
17.7%
15.0%
8.5%
10.0%
25.9%
5.0%
0.0%
0.0%
2007
2.3%
2.2%
17.7%
31.0%
8.5%
2008
2.2%
2009
2010
2011
2012
1H13
*64.4% excluding contribution from Heilongjiang Tongze Pharmaceutical.
19
2. Building a Superior Pipeline
CFDA Class 1 New Drug
Enjoy preferential pricing, tender-bidding rights,
and insurance reimbursement
First-to-Market Generic
Timing and branding are critical factors for fast
market penetration
International Patented Products
Products with international IP enjoy much longer
life cycle
20
Pharma Product Pipeline
Indications
Medicine Name
2014
2015
2016
2017
2018
2019
2020
Entecavir dispersible tablets
Hepatitis
Recom. HSA-Interferon α2b fusion
Tenofovir
Compound ipratropium bromide
Respiratory
Ciclesonide aerosol
Beclomethasone dipropionate Aerosol
Irinotecan Injection
Temozolomide capsule
Oncology
Vorinostat
MORE
PRODUCTS TO
BE ADDED
INTO THE
PIPELINE
Capecitabine
Imatinib
Bortezomib
G.I.
Alvimopan
C.V.
Metoprolol succinate sustained-release tablets
21
Non-Pharma Product Pipeline
Indications
Supplier
Products Name
2013
2014
2015
2016
2017
Medical Devices
Orthopedic
Medtronic/Kanghui
Spine Balloon(PKP)
Dental
HC-BIOS
Dental Implant
Scanning Laser Ophthalmoscope
Ophthalmology
Suzhou Micro Clear
Fluorescence Scanning Laser
Ophthalmoscope
Handheld-Fundus Camera
MORE
PRODUCTS
TO BE
ADDED
INTO THE
PIPELINE
IVD reagents
RNA Diagnosis
Rendu
Biotechnology
HIV/HBV/HCV
22
3. Leverage Strengths of Strategic Partners
Taiwanese
partnership
MNC partnership
Local joint
ventures
Local M&A
 Strategic investments in TW pharma and med device companies
 Source high-market-potential TW products
 In-license mature, registered, high-growth drugs from MNCs
 Enter new therapeutic areas
 Product co-development to boost profitability
 Expand geographic reach
 Increase product offerings
23
Value Creation Via Strategic Alliances
We aim to integrate API, Formulation & Marketing
For Example:
Coland has formed a strategic alliance
with ScinoPharm to co-develop oncology
products for the China market
Coland
marketing
ScinoPharm will exclusively provide
APIs
Coland & ScinoPharm will jointly
engage a formulation partner
Coland will manage the CFDA
filing process and marketing
API
Formulation
24
Value Creation – Coland Style
Executive Summary
Outstanding Performance
Strategy for Future Growth
Financial Performance
Appendix
25
Historical Performance
$2,000
$1,800
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
(NTD mn)
$0
2006
2007
2008
2009
2010
2011
2012
Net Sales
$570
$1,244
$1,671
$1,573
$1,509
$1,503
$1,722
Net Income
$75
$246
$390
$459
$369
$314
$303
26
Consolidated Income Statement
NTD Million
2013 Q2
2013 Q1
+/-%
2013 1H
2012 1H
+/-%
Net Sales
456
100%
457
100%
0%
912
100%
791
100%
15%
Gross Profit
258
57%
243
53%
6%
502
55%
477
60%
5%
Operating Expense 185
41%
158
35%
17%
343
37%
280
35%
22%
Operating Profit
73
16%
86
18%
-14%
159
18%
197
25%
-19%
Non-Opt
income/Exp
77
17%
73
16%
7%
150
16%
45
6%
233%
Profit Before Tax
151
33%
158
34%
-5%
309
34%
242
31%
28%
Profit After Tax
120
26%
135
29%
-11%
254
28%
179
23%
42%
7
2%
7
2%
0%
15
2%
0
0%
100%
Net Profit
112
25%
127
28%
-12%
239
26%
179
23%
34%
Basic EPS (NTD)
1.60
Minority Interest
1.82
EPS is based on a total of 70 million issued shares.
3.42
2.56
27
Consolidated Balance Sheet
NTD Million
2013-6-30
2013-3-31
2012-12-31
Cash & Equivalents
920
33%
1,033
39%
930
40%
Accounts Receivable
356
13%
324
12%
365
16%
Inventory
163
6%
85
3%
81
3%
Long Term Investments
688
25%
662
25%
441
19%
11
0%
8
0%
9
0%
390
14%
389
15%
383
16%
2,798
100%
2,629
100%
2,337
100%
Short term Liabilities
419
15%
166
6%
142
6%
Long term & other liabilities
110
4%
108
4%
143
6%
2,269
81%
2,355
90%
2,053
88%
Fixed Assets
Intangible Assets
Total Assets
Shareholders’ Equity
Key Indices
Days Sales Outstanding
68
69
68
Inventory Turnover Days
57
36
39
28
1H13 Sales Breakdown
1H 13
Cardiovascular8%
Medical Device,13%
Others,11%
Medical
Device,11%
1H 12
Others,4%
Respiratory,1%
Hepatits,68%
Hepatits,83%
Respiratory,2%
Notes:
1. Sales from Heilongjiang Tong-ze accounted for 21% of total 1H 13 sales.
2. Others : Anti-infective, Immunomodulatory, Neuro system, Biological, Digestive system, etc.
29
Dividends paid in 2011 and 2012
( NTD Million )
2011
2012
Net income
314
303
Cash dividend
280
224
Dividend p/s (NT$)
4.0
3.2
Cash yield (%)
5.9*1
4.6*2
Payout ratio (%)
89%
74%
Source: TWSE
Note 1：Stock price based on closing price on 20 Jun 2012, the day before Ex-div date
Note 2：Stock price based on closing price on 10 July 2013, the day before Ex-div date
30
1H13 Milestones
Rx drugs
ScinoPharm
Medical devices
HC-BIOS
Microclear
IVD reagents
Kanghui
Rendu
Strategic
alliance
with Taiwan
ScinoPharm
Invested in
Taiwan HCBIOS
Invested in
Suzhou
Microclear
Cooperation
with Kanghui
Medical
Invested in
Shanghai
Rendu
Biotechnology
Co-develop
oncology
products for
the China
market
To develop
dental implant
products for
the China
market
Enter the eye
fundus
photography
laser scanning
device market
Obtain
exclusive
agency rights
in Shanghai for
spine balloon
products
Enter the
China market
for high-vitro
diagnostic
reagents
31
Our Commitment to Shareholders
• We aim to become the leading China-focused
company specialized in the commercialization of
healthcare products in China.
• We hope to sustain stable earnings growth.
• We intend to maintain a consistently higherthan-industry- average cash dividend payout to
shareholders.
• We also pledge that our primary focus will be the
maximization of returns to our shareholders via
the profitable long-term growth of our core
business.
32
Value Creation – Coland Style
Executive Summary
Outstanding Performance
Strategy for Future Growth
Financial Performance
Appendix
33
Coland’s Existing Collaborations
Hangzhou Jiuyuan
TIPR
Zhejiang Xianju Pharma
ScinoPharm Taiwan Ltd
Anhui Beike
Taiwan Biotech Company
Rendu Biotechnology
Pharma Dax
HC Bio-S
Taiwan Nanguang Pharma
Medtronic
Taiwan Lotus Pharma
Micro Clear
pfizer
GSK
34
Coland: the Go-To Partner for TW Pharma
Coland: The ideal platform for quality Taiwanese drugs and medical devices
seeking entry into the vast China market
Partner
Drug Name
Taiwan Biotech Co 吸入用複方異丙托溴銨溶液
Drug Name
Origin
Brand Name
Disease Type Mkt Launch
Compound ipratropium
bromide
BI
可必特
Combivent
COPD
2014
Taiwan Nanguang
Pharma
鹽酸伊立替康注射液
Irinotecan Injection
Pfizer
開普拓
Campto
Cancer
2014
Lotus Pharma
替莫唑胺膠囊
Temozolomide capsule
Merck
泰道
Temodal
Cancer
2017
倍他樂克
Betaloc
ZOK(Toprol-XL)
Cardio
2017
萬珂
Velcade
Cancer
2017
PharmaDax
琥珀酸美托洛爾緩釋片
Scinopharm
注射用硼替佐米
Metoprolol succinate
AstraZeneca
sustained-release Tablets
Bortezomib
Takeda
35
An Introduction of HC-BIOS
 Founded: Oct, 2007. 2011 Ti-One ® 101 Taiwan listed
HC-BIOS
 Obtained CE 0123 and ISO 13485 Certifications in 2011 & U.S.A. FDA certification in 2012
 Develops and manufactures dental implant systems
SLAffinity
Products
Advantage
SLA
 Dental implants
 Orthopedic (trauma)
 Innovative Surface Treatment- SLAffinity®
 Helps the implant to absorb proteins and growth factors in the blood
 Accelerates the initial osseointegration and shortens the alveolar bone healing process
Competitors
 Price positioning is between first and second-tier international brands
 America, Europe and Korea
 The functional and aesthetic demands of patients are increasing as the general population
Future growth
ages and life expectancy increases
 The global dental implant market size was US$3B as of 2010. China represented less
than 1% of this market and demand in China is growing at more than 30% annually
36
An Introduction of Microclear
Suzhou
Microclear
Products
 Founded: June, 2011. Based in Suzhou Industrial Park.
 Founder Dr. Li was a researcher at the Houston Medical Center for Clinical Ophthalmology
 Microclear’s scopes integrate optical, mechanical, electronic, and image processing technology
 Scanning Laser Ophthalmoscope (2014.10)
 Fluorescence Scanning Laser Ophthalmoscope (2014.11)
 Handheld-fundus Camera (2015.06)
 One shot vs. Video
Advantage
 White light vs. IR light
 Pupil size: 2.5mm vs. 1.5mm
 Visual field: 30°~45° vs. 30°~60°
Competitors
 Microclear is the only China-based company to develop this technology
 Germany (HEIDELBERG), England (OPTOS) and Holland (IOPTICS)
 Demand from tier II hospitals, fundus screening, medical centers and other market segments
Future growth
 Based on current market trends, Scanning Laser Ophthalmoscopes will replace Fundus Cameras
 The Chinese ophthalmic market is expected to reach 4 billion RMB
37
An Introduction of Rendu Biotechnology
 Founded by a Chinese-American scientist in June, 2007
Rendu Biotech
 Based in Zhangjiang High Technology Park, Shanghai
 Manufacture and sales of SAT (Simultaneous Amplification and Testing) equipment & reagents
 Full automatic RNA extractor
Products
 CT/NG/UU/MG Detection
 TB/EV71/CA16/EV Detection
 HIV/HBV/HCV Virus Diagnosis
 Fully automatic , improves process standardization, and reduces operator workload
Advantage
 Higher sensitivity and specificity for pathogen testing
 Less contamination - RNA degrades easily
 Convenient testing method (urine test), rapid delivery of results (2hrs vs. 14 days)
Competitors
 Rendu is the only China-based company that has RNA detection products and pipelines
 Gen-Probe (TMA), Biomerieux (NASBA) have not entered the China market
 China-based competitors: Molecular, Immuno-assay, Sansure
 Global IVD market is US$35B, or 12% of total lab tests, and RNA detection is a leading method
Future growth
 China IVD market is only 1-2% total lab tests, and RNA detection is just beginning
 RNA Diagnosis market growth in China is 25-30% annually, higher than general IVD market
38
China Pharmaceutical Market Forecasts
China was the third largest pharma market in the world in 2011, according to IMS.
China’s health expenditure reached 5.4% of GDP in 2010, much lower than the
average 10% for developed countries and 16% for US.
China’s health care expenditures are projected to increase at a 20% CAGR between
2011 and 2016. China is projected to become the second largest Pharma market in
the world in 2020, according to market research.
•
•
•
Year 2000
Year 2005
Year 2009
Year 2011
1
USA
1
USA
1
USA
1
USA
2
Japan
2
Japan
2
Japan
2
Japan
3
Germany
3
Germany
3
France
3
China
4
France
4
France
4
Germany
4
Germany
5
UK
5
UK
5
China
5
France
6
Italy
6
Italy
6
Italy
6
Italy
7
China
7
China
7
Spain
7
Spain
8
Brazil
8
Brazil
8
UK
8
Brazil
9
Canada
9
Canada
9
Brazil
9
UK
10
Spain
10
Spain
10
Canada
10
Canada
Source：IMS, PRC government publications, estimates from independent research firms.
39
Targeting High Growth Market Segments
Therapeutic
Subcategory
China market
(Million RMB)
2011/12-2012/11
CAGR (%)
2007-2012
Growth rate(%)
2012 vs.2011
Anti-infectives
83,049
10
0.4
Metabolism
58,080
25
24.0
Cardiovascular
57,176
25
27.4
Oncology
43,296
24
26.1
Respiratory
12,569
29
29.5
Source: IMS May 2013
Targeted market
segments have a
combined
market size of
RM196 Bn with a
projected 20%+
CAGR from 2007
to 2012
40
Investing in Medical Devices and IVD
• Prior to 2008: Medical device
•
•
•
replacement as result of “wear and tear”
2009 to 2011: State-owned hospitals
make collective purchases in the period of
Medical System Reform
2012 to now: Increases in medical
insurance coverage stimulate demand
•
Market Size - IVD Reagent
(in Million USD)
Market Size – Medical Equipment
(in Hundred Million RMB)
3,000
14.3%
20.8%
12.9%
950
1078
268
1211
1356
332
1534
412
1724
492
1933
606
In 2012, the China IVD Reagent
market reached US$1.7B
It is projected to reach US$2.7B in
2015, with a CAGR of 20%+
between 2007-2015
896
733
2,714
2,500
20%+
2,000
1,712
1,500
2178
2450
2754
1,000
500
1,259
794
501
2006
2007
2008
2009
Natural Growth
2010
2011
Policy Driven
Source: Deutsche Bank
2012
2013
2014
Patient Driven
2015
2004
2007
2010
2012
2015
Source: Kalorama
41
Medical Devices Market
• Med device sales as % of total
pharma + med devices mkt:
China(15%) vs. Global(40%)
• Average expenditure on medical
products per capita:
China: US$ 13/per person vs.
US: US$ 329/per person
• Demand driven by medical
insurance increase and expansion
China medical device market
(in Hundred Million RMB)
1400
1200
1000
800
600
400
200
0
19% 20% 19% 20%
17%
14% 14%
17%
Source: Chinese Medical Device Industry Association
25% 24%
0.3
0.25
0.2
14% 15%
19%
17% 18% 17%
0.15
0.1
0.05
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
medical devices market size
medical devices market growth rate
pharmaceutical market growth rate
China pharmaceutical and
medical devices market
Global pharmaceutical and
medical devices market
100%
80%
60%
40%
20%
0%
23% 23% 23% 23%
41% 40% 41% 41% 42% 42% 42% 42%
100%
80%
60%
40%
20%
0%
10% 10% 11% 11% 12% 13% 14% 14%
Global pharmaceutical market
China pharmaceutical market
Global medical devices market
China medical devices market
42
Dental Implant Market
• Both functional and aesthetic
demands of patients are increasing.
• The general population is aging and
life expectancy is increasing. Tooth
loss is a function of age.
• There is significant potential
demand emerging in China.
Dental Implant Market Size
(in Million USD)
4500
4000
3500
3000
2500
2000
1500
1000
500
0
Europe
290
445
773
347
560
USA
485
413
850
693
Asia Pacific
545
920
630
590
1021
1115
679
1208
740
1301
812
897
1386 1468
1751 1867 1980
1378 1503 1631
1230
1147
886 1011
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: Medical Technology, Merrill Lynch, 2007/
Global Dental Implants Market, M&M, July2010
255
Penetration rate of dental implants in 2008
192
168
145133
107
The number of dental implants/
ten thousand people
87
63 57 54
44 39 35
25 18 17
7 1
Source: Biomet/3i
Global Dental Implants Market
Other
Area,10%
China, Less
than1%
Asia Pacific,16%
Europe,47%
North America,27%
Source: Straumann 2010
43
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