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INDUSTRY PROFILE

Global Health Care Equipment & Supplies


Reference Code: 0199-2067 Publication Date: July 2011

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EXECUTIVE SUMMARY

EXECUTIVE SUMMARY
Market value
The global health care equipment & supplies market grew by 2.9% in 2010 to reach a value of $326.8 billion.

Market value forecast


In 2015, the global health care equipment & supplies market is forecast to have a value of $370.7 billion, an increase of 13.4% since 2010.

Market segmentation I
Disposable equipment & supplies is the largest segment of the global health care equipment & supplies market, accounting for 40.1% of the market's total value.

Market segmentation II
Americas accounts for 45.9% of the global health care equipment & supplies market value.

Market rivalry
The global health care equipment and supplies market is characterized by the presence of large, international incumbents, which increases rivalry somewhat.

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CONTENTS

TABLE OF CONTENTS
EXECUTIVE SUMMARY MARKET OVERVIEW Market definition Research highlights Market analysis MARKET VALUE MARKET SEGMENTATION I MARKET SEGMENTATION II FIVE FORCES ANALYSIS Summary Buyer power Supplier power New entrants Substitutes Rivalry LEADING COMPANIES Abbott Laboratories Johnson & Johnson Siemens Healthcare Medtronic, Inc. MARKET FORECASTS Market value forecast APPENDIX Methodology Industry associations Related Datamonitor research Disclaimer 2 7 7 8 9 10 11 12 13 13 14 15 16 18 19 20 20 24 28 30 34 34 35 35 36 36 37

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CONTENTS

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CONTENTS

LIST OF TABLES
Table 1: Table 2: Global health care equipment & supplies market value: $ billion, 200610 Global health care equipment & supplies market segmentation I:% share, by value, 2010 Global health care equipment & supplies market segmentation II: % share, by value, 2010 Abbott Laboratories: key facts Abbott Laboratories: key financials ($) Abbott Laboratories: key financial ratios Johnson & Johnson: key facts Johnson & Johnson: key financials ($) Johnson & Johnson: key financial ratios Siemens Healthcare: key facts Medtronic, Inc.: key facts Medtronic, Inc.: key financials ($) Medtronic, Inc.: key financial ratios Global health care equipment & supplies market value forecast: $ billion, 201015 10

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Table 4: Table 5: Table 6: Table 7: Table 8: Table 9: Table 10: Table 11: Table 12: Table 13: Table 14:

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CONTENTS

LIST OF FIGURES
Figure 1: Figure 2: Global health care equipment & supplies market value: $ billion, 200610 Global health care equipment & supplies market segmentation I:% share, by value, 2010 Global health care equipment & supplies market segmentation II: % share, by value, 2010 Forces driving competition in the global health care equipment & supplies market, 2010 Drivers of buyer power in the global health care equipment & supplies market, 2010 Drivers of supplier power in the global health care equipment & supplies market, 2010 Factors influencing the likelihood of new entrants in the global health care equipment & supplies market, 2010 Factors influencing the threat of substitutes in the global health care equipment & supplies market, 2010 Drivers of degree of rivalry in the global health care equipment & supplies market, 2010 Abbott Laboratories: revenues & profitability Abbott Laboratories: assets & liabilities Johnson & Johnson: revenues & profitability Johnson & Johnson: assets & liabilities Medtronic, Inc.: revenues & profitability Medtronic, Inc.: assets & liabilities Global health care equipment & supplies market value forecast: $ billion, 201015 10

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Figure 9: Figure 10: Figure 11: Figure 12: Figure 13: Figure 14: Figure 15: Figure 16:

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MARKET OVERVIEW

MARKET OVERVIEW
Market definition
The health care equipment & supplies market profile analyzes manufacturers of health care equipment and supplies. Market value refers to the revenues generated through the sale of healthcare equipment and supplies. The market profile covers disposable equipment and supplies such as syringes, catheters, electrodes, sutures, bandages, implantable prostheses and orthotics and prosthetics; otologic & technical aids such as hearing aids and wheelchairs; ophthalmic equipment such as eye glasses, contact lenses and ophthalmoscopes; in vitro diagnostics such as devices for clinical chemistry, microbiology, immunology and genetic tests; and other equipment such as imaging equipment and films and equipment for radiotherapy, dialysis, endoscopy, anaesthetics, etc. The market is valued at manufacturer's selling price with any currency conversions calculated using constant 2010 annual average exchange rates. For the purposes of this report, the global market consists of North America, South America, Western Europe, Eastern Europe, MEA, and Asia-Pacific. North America consists of Canada, Mexico, and the United States. South America comprises Argentina, Brazil, Chile, Colombia, and Venezuela. Western Europe comprises Belgium, Denmark, France, Germany, Greece, Italy, the Netherlands, Norway, Spain, Sweden, Switzerland, Turkey, and the United Kingdom. Eastern Europe comprises the Czech Republic, Hungary, Poland, Romania, Russia, and Ukraine. Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New Zealand, Singapore, South Korea, Taiwan, and Thailand. Middle East-Africa (MEA) comprises Egypt, Israel, Nigeria, Saudi Arabia, South Africa, and United Arab Emirates.

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MARKET OVERVIEW

Research highlights
The global health care equipment & supplies market had total revenue of $326,807.4 million in 2010, representing a compound annual growth rate (CAGR) of 4% for the period spanning 2006-2010. Disposable equipment & supplies sales proved the most lucrative for the global health care equipment & supplies market in 2010, with total revenues of $130,992.2 million, equivalent to 40.1% of the market's overall value. The performance of the market is forecast to decelerate, with an anticipated CAGR of 2.6% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $370,684.5 million by the end of 2015.

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MARKET OVERVIEW

Market analysis
Growth within the global health care equipment & supplies market has been fluctuating slighly since 2006, reaching its lowest of 1.5% in 2009. In the forecast period, the market is expected to stabilize, with annual rate not exceeding 3%. The global health care equipment & supplies market had total revenue of $326,807.4 million in 2010, representing a compound annual growth rate (CAGR) of 4% for the period spanning 2006-2010. In comparison, the European and Asia-Pacific markets grew with CAGRs of 2.8% and 3.5% respectively, over the same period, to reach respective values of $103,624.6 million and $65,673.3 million in 2010. Disposable equipment & supplies sales proved the most lucrative for the global health care equipment & supplies market in 2010, with total revenues of $130,992.2 million, equivalent to 40.1% of the market's overall value. In comparison, sales of technical aids generated revenues of $37,510.8 million in 2010, equating to 11.5% of the market's aggregate revenues. The performance of the market is forecast to decelerate, with an anticipated CAGR of 2.6% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $370,684.5 million by the end of 2015. Comparatively, the European and Asia-Pacific markets will grow with CAGRs of 1.8% and 1.2% respectively, over the same period, to reach respective values of $113,109.6 million and $69,590.5 million in 2015.

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MARKET VALUE

MARKET VALUE
The global health care equipment & supplies market grew by 2.9% in 2010 to reach a value of $326.8 billion. The compound annual growth rate of the market in the period 200610 was 4%. Table 1: Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor Global health care equipment & supplies market value: $ billion, 200610 $ billion 279.1 294.6 312.9 317.5 326.8 billion 210.2 221.9 235.6 239.1 246.1 % Growth 5.6% 6.2% 1.5% 2.9% 4.0% DATAMONITOR

Figure 1:

Global health care equipment & supplies market value: $ billion, 200610

Source: Datamonitor

DATAMONITOR

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MARKET SEGMENTATION I

MARKET SEGMENTATION I
Disposable equipment & supplies is the largest segment of the global health care equipment & supplies market, accounting for 40.1% of the market's total value. The Technical aids segment accounts for a further 11.5% of the market. Table 2: Global health care equipment & supplies market segmentation I:% share, by value, 2010 Category Disposable equipment & supplies Other equipment Technical aids IV diagnostics Dental surgery equipment & supplies Opthalmic equipment Total Source: Datamonitor % Share 40.1% 17.7% 11.5% 10.5% 10.1% 10.0% 100% DATAMONITOR

Figure 2:

Global health care equipment & supplies market segmentation I:% share, by value, 2010

Source: Datamonitor

DATAMONITOR

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MARKET SEGMENTATION II

MARKET SEGMENTATION II
Americas accounts for 45.9% of the global health care equipment & supplies market value. Europe accounts for a further 31.7% of the global market. Table 3: Global health care equipment & supplies market segmentation II: % share, by value, 2010 Category Americas Europe Asia-Pacific Middle East & Africa Total Source: Datamonitor % Share 45.9% 31.7% 20.1% 2.3% 100% DATAMONITOR

Figure 3:

Global health care equipment & supplies market segmentation II: % share, by value, 2010

Source: Datamonitor

DATAMONITOR

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FIVE FORCES ANALYSIS

FIVE FORCES ANALYSIS


The health care equipment & supplies market will be analyzed taking manufacturers of health care equipment as players. The key buyers will be taken as hospitals, clinics, outpatients facilities and medical offices, and raw material producers as the key suppliers.

Summary
Figure 4: Forces driving competition in the global health care equipment & supplies market, 2010

Source: Datamonitor

DATAMONITOR

The global health care equipment and supplies market is characterized by the presence of large, international incumbents, which increases rivalry somewhat. The number of buyers present within the global health care equipment and supplies market is limited, which serves to increase buyer power and negotiating position. Market players are heavily dependent upon suppliers of raw materials. Suppliers are typically large scale companies who can negotiate on price which strengthens their position somewhat. There exist high entry barriers, often imposed by leading incumbents. Rivalry is alleviated slightly by the fact, main players have diversified operations; however, to succeed within this market, extensive research capabilities and meeting stringent government regulations are essential.

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FIVE FORCES ANALYSIS

Buyer power
Figure 5: Drivers of buyer power in the global health care equipment & supplies market, 2010

Source: Datamonitor

DATAMONITOR

The number of buyers within the global health care equipment and supplies market is limited, meaning that leading incumbents are competing with each other to assure purchases. This means buyers hold a certain degree of power over market players. As buyers are typically small in size comparing to main players, they can negotiate better prices using group purchasing, which enhances buyer power further. Switching costs in this market are negligible due to the undifferentiated nature of products. Furthermore, the advancement of E-procurement systems means that buyers are more knowledgeable about products and therefore prices. This increases competition between market players and serves to increase buyer power. Buyers, however, seek high quality and reliability, which reduces their power somewhat, as market players can increase their prices accordingly. The recent economic difficulties have seen disposable incomes shrink, meaning that consumers are becoming more cost-conscious, also resulting in a decreasing number of surgical procedures and pricing pressures. Consumer habits have therefore altered with many opting for cheaper over-the-counter products, increasing the pressure on manufacturers further. Traditionally, branding had little impact upon this market; however, players are now aiming to strengthen their brands in order to gain a greater market share. Overall, buyer power is assessed as moderate.

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FIVE FORCES ANALYSIS

Supplier power
Figure 6: Drivers of supplier power in the global health care equipment & supplies market, 2010

Source: Datamonitor

DATAMONITOR

Raw materials manufacturers constitute the main suppliers to the healthcare equipment and supplies market. In most cases, market players will source inputs from a variety of suppliers to reduce their dependence on a single provider; however, in some cases, players are reliant upon one company for their specific materials. Such suppliers are usually large in nature due to the inherent large-scale operation involved in production. This means, such suppliers are able to negotiate on price, which strengthens their position somewhat. However, there is little differentiation in supply materials, meaning that market players can opt for cheaper deals with varying companies. The presence of contracts, on the other hand, usually indicates penalties upon termination of a contract, imposing switching costs and increasing supplier power to some extent. Raw materials are subject to fluctuations in price, which can negatively affect a companys profitability. Market players may purchase inputs on the open market, but doing so they lose control over prices. Overall, supplier power in this market is moderate.

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FIVE FORCES ANALYSIS

New entrants
Figure 7: Factors influencing the likelihood of new entrants in the global health care equipment & supplies market, 2010

Source: Datamonitor

DATAMONITOR

The global health care equipment and supplies market has experienced a significant deceleration in growth in recent years, which coupled with unexciting growth prognoses tends to discourage newcomers somewhat. Additionally, the market is dominated by large scale international incumbents, namely Johnson & Johnson, Siemens Healthcare or Medtronic, who benefit from scale economies, meaning they can negotiate heavily on price. Research is highly important for players revenues, as buyers are increasingly cost aware, meaning they are unlikely to invest in equipment or supplies which offer little improvement on previous models. In addition to this, players must adapt to constant technological and scientific advancements in order to compete successfully with others. Large scale of operations and strong research and development centers, allow such players to easily expand into various geographical areas and tap a share of emerging markets. There is a large degree of regulation present within the market, concerning product labeling requirements, promotion and marketing schemes, quality system requirements, record keeping and medical device reporting. New entrants must gain approval for a new product, by ensuring third-party sponsors of cost effectiveness, which typically results from a time consuming and expensive clinical trial. Increased government regulation could increase compliance costs which in turn reduces revenues.

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FIVE FORCES ANALYSIS

However brand identity in this market is minimal with customers more concerned about quality and price. Low switching costs, easily accessible suppliers and distribution channels also prove enticing for new players. Overall, there is a moderate likelihood of new entrants to the market.

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FIVE FORCES ANALYSIS

Substitutes
Figure 8: Factors influencing the threat of substitutes in the global health care equipment & supplies market, 2010

Source: Datamonitor

DATAMONITOR

There are no real substitutes to health care products, thus the threat of substitutes in this market is correspondingly low.

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FIVE FORCES ANALYSIS

Rivalry
Figure 9: Drivers of degree of rivalry in the global health care equipment & supplies market, 2010

Source: Datamonitor

DATAMONITOR

The global health care equipment and supplies market is characterized by the presence of large scale international incumbents, such as Johnson & Johnson, Siemens Healthcare or Medtronic, which increases the level of rivalry. Such companies are large in nature and therefore benefit from scale economies, meaning they can negotiate more intensely on price. Furthermore, such players are able to differentiate themselves through extensive research and development. In addition, many operate in a wide range of markets. For example, J&J represents one of the most diverse healthcare companies, both in terms of its pharmaceutical portfolio, but also due to its large medical devices & diagnostics and consumer health divisions. The company is additionally strengthened by its large, international sales force. This diversification reduces the company's dependence upon any one area of operations. A strong product portfolio increases financial stability, as well as provides the necessary funds to complete more research and expand operations into other geographical regions. Rivalry is additionally strengthened by sluggish market growth, forcing market players to compete fiercely for a shrinking pie of market revenues. Overall, rivalry within the market is moderate.

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LEADING COMPANIES

LEADING COMPANIES
Abbott Laboratories
Table 4: Abbott Laboratories: key facts 100 Abbott Park Road ,Abbott Park ,Illinois 60064 6400 ,USA 1 847 937 6100 1 847 937 9555 www.abbott.com December ABT New York DATAMONITOR

Head office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange: Source: company website

Abbott Laboratories (Abbott) is a global health care company engaged in the discovery, development, manufacture and marketing of pharmaceuticals, nutritional products, medical devices, and diagnostics. Abbott also has a 50% owned joint venture (with the Japanese company Takeda), TAP Pharmaceutical Products, to develop and market pharmaceutical products primarily for the US. Abbott has presence in more than 130 countries, with major operations in the US, the Netherlands, Germany, Japan, Italy, France, Canada, the UK and Spain. The company primarily operates in five segments: pharmaceutical products, diagnostic products, nutritional products, vascular products and 'other' products. The pharmaceutical products segment manufactures, markets, and sells a range of adult and pediatric pharmaceuticals. Its major products include Humira, TriCor, TriLipix, Niaspan, Synthroid, Meridia, Depakote, Zemplar, Ogastro, Lupron, Kaletra, Aluvia, and Norvir. The segment markets its products worldwide and sells its products directly to wholesalers, government agencies, health care facilities, and independent retailers from Abbott-owned distribution centers and public warehouses. Certain products are co-marketed or co-promoted with other companies. The diagnostic segment is engaged in manufacturing, marketing, and selling of diagnostic systems and tests. Abbott's principal products include Architect, Axsym, Imx, Commander, Abbott Prism, Architect C8000 and C16000, m2000, Vysis and Cell-Dyn. Under a distribution agreement with Celera Group, distributes certain Celera molecular diagnostic products, including Viroseq HIV genotyping system and products used for the detection of mutations in the CFTR gene, which causes cystic fibrosis.

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LEADING COMPANIES

The diagnostic products segments and markets its products directly to blood banks, hospitals, commercial laboratories, clinics, physicians' offices, alternate-care testing sites, and plasma protein therapeutic companies. The nutritional products segment manufactures, markets, and sells a range of pediatric and adult nutritional products. Its major products include products under Similac and Isomil brands, Alimentum, Jevity, Glucerna 1.2 Cal, Oxepa and Nepro. These products are sold directly to consumers, often on the recommendation or prescription of physicians or other health care professionals, and to health care facilities and government agencies. It also sells its products to retailers, wholesalers, and third-party distributors from Abbott-owned distribution centers or third-party distributors. The vascular products segment manufactures, markets, and sells a wide range of coronary, endovascular, and vessel closure devices for the treatment of vascular disease. Its principal products include Xience V, Multi-Link Vision, Multi-Link Mini Vision, StarClose and Perclose vessel closure devices, Acculink/Accunet and Xact/Emboshield. Abbott markets and sells its products to hospitals from Abbott-owned distribution centers and public warehouses. The 'other' products segment offers blood glucose monitoring meters, test strips, data management software and accessories for people with diabetes. The company markets and sells its products to wholesalers, government agencies, health care facilities, mail order pharmacies, and independent retailers from Abbott-owned distribution centers and public warehouses across the world. It also markets and distributes its products through distributors. In addition, blood glucose monitoring meters are also marketed and sold over-the-counter to consumers. Key Metrics The company recorded revenues of $35,167 million in the fiscal year ending December 2010, an increase of 14.3% compared to fiscal 2009. Its net income was $4,626 million in fiscal 2010, compared to a net income of $5,746 million in the preceding year.

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LEADING COMPANIES

Table 5: $ million

Abbott Laboratories: key financials ($) 2006 22,476.3 1,716.8 36,178.2 22,124.0 66,663 2007 25,914.2 3,606.3 39,713.9 21,890.0 68,000 2008 29,527.6 4,880.7 42,419.2 24,900.5 69,000 2009 30,764.7 5,745.8 52,416.6 29,517.9 73,000 2010 35,166.7 4,626.2 59,462.3 29,785.9 83,000

Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings

DATAMONITOR

Table 6: Ratio

Abbott Laboratories: key financial ratios 2006 7.6% 0.6% 24.1% 50.2% 61.2% 5.3% $337,163 $25,753 2007 13.9% 15.3% 9.8% (1.1%) 55.1% 9.5% $381,091 $53,034 2008 16.5% 13.9% 6.8% 13.8% 58.7% 11.9% $427,936 $70,735 2009 18.7% 4.2% 23.6% 18.5% 56.3% 12.1% $421,434 $78,710 2010 13.2% 14.3% 13.4% 0.9% 50.1% 8.3% $423,695 $55,737

Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings

DATAMONITOR

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LEADING COMPANIES

Figure 10: Abbott Laboratories: revenues & profitability

Source: company filings

DATAMONITOR

Figure 11: Abbott Laboratories: assets & liabilities

Source: company filings

DATAMONITOR

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LEADING COMPANIES

Johnson & Johnson


Table 7: Head office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange: Source: company website Johnson & Johnson: key facts One Johnson & Johnson Plaza, New Brunswick, New Jersey 08933, USA 1 732 524 0400 1 732 214 0332 www.jnj.com December JNJ New York DATAMONITOR

Johnson & Johnson (J&J) is a global manufacturer of health care products as well as a provider of related services. The company conducts its international business through its subsidiaries. It has major operations in the US, Europe, Asia Pacific region and Africa. The company operates through three segments: consumer, pharmaceuticals, and medical devices and diagnostics. J&J's consumer segment develops, manufactures and markets products for baby care, skin care, oral care, wound care and women's health care. It also offers nutritional and over-the-counter (OTC) pharmaceutical products. Its major brands include: Aveeno (skin care products); Band-Aid (adhesive bandages); Carefree (panty liners); Clean & Clear (skin care products for teens); Johnson's baby and adult lines of products; Motrin IB (ibuprofen products); Neutrogena (skin and hair care products); RoC (skin care products); Pepcid AC (acid controller); Listerine and Reach (oral care products); Dabao (moisturizers); Zyrtec (allergy products); Splenda (sweetener); Stayfree (sanitary protection products); and Tylenol (acetaminophen products). The company sells its products to wholesalers and directly to independent and chain retail outlets throughout the world. The company's pharmaceutical segment produces and markets products in the following therapeutic areas: anti-infective, antipsychotic, cardiovascular, contraceptive, dermatology, gastrointestinal, hematology, immunology, neurology, oncology, pain management, urology and virology. J&J's principal brands include: Risperdal (risperidone) and Risperdal Consta (risperidone long-acting injection), for treatment of the symptoms of schizophrenia; PROCRIT (epoetin alfa), a red blood cell production stimulant; Remicade (infliximab), for the symptoms of Crohn's disease, ankylosing spondylitis, psoriatic arthritis, ulcerative colitis, chronic severe plaque psoriasis and rheumatoid arthritis;

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LEADING COMPANIES

Topamax (topiramate), an anti-epileptic and migraine prevention treatment; Levaquin (levofloxacin) and FLOXIN (ofloxacin), both in the anti-infective field; Duragesic/Fentanyl Transdermal (fentanyl transdermal system), a treatment for chronic pain; Ortho Evra (norelgestromin/ethinyl estradiol transdermal system), a contraceptive patch; and Concerta (methylphenidate HCl) for attention deficit hyperactivity disorder. J&J's products are distributed directly to retailers, wholesalers and health care professionals. J&J's medical devices and diagnostics segment manufactures and markets products used by physicians, nurses, therapists, hospitals, diagnostic laboratories and clinics. The segment's major products include circulatory disease management products; orthopedic joint reconstruction, spinal care and sports medicine products; surgical care and women's health products; surgical products; blood glucose monitoring and insulin delivery products; and contact lenses. The company's products are distributed to wholesalers, hospitals and retailers. Key Metrics The company recorded revenues of $61,587 million in the fiscal year ending December 2010, a decrease of .5% compared to fiscal 2009. Its net income was $13,334 million in fiscal 2010, compared to a net income of $12,266 million in the preceding year.

Table 8: $ million

Johnson & Johnson: key financials ($) 2006 53,324.0 11,053.0 70,556.0 31,238.0 122,200 2007 61,095.0 10,576.0 80,954.0 37,635.0 119,200 2008 63,747.0 12,949.0 84,912.0 42,401.0 118,700 2009 61,897.0 12,266.0 94,682.0 44,094.0 115,500 2010 61,587.0 13,334.0 102,908.0 46,329.0 114,000

Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings

DATAMONITOR

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LEADING COMPANIES

Table 9: Ratio

Johnson & Johnson: key financial ratios 2006 20.7% 5.6% 19.9% 55.0% 44.3% 17.1% $436,367 $90,450 2007 17.3% 14.6% 14.7% 20.5% 46.5% 14.0% $512,542 $88,725 2008 20.3% 4.3% 4.9% 12.7% 49.9% 15.6% $537,043 $109,090 2009 19.8% (2.9%) 11.5% 4.0% 46.6% 13.7% $535,905 $106,199 2010 21.7% (0.5%) 8.7% 5.1% 45.0% 13.5% $540,237 $116,965

Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings

DATAMONITOR

Figure 12: Johnson & Johnson: revenues & profitability

Source: company filings

DATAMONITOR

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LEADING COMPANIES

Figure 13: Johnson & Johnson: assets & liabilities

Source: company filings

DATAMONITOR

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LEADING COMPANIES

Siemens Healthcare
Table 10: Siemens Healthcare: key facts Henkestrasse 127, D-91052 Erlangen, DEU 49 69 797 6602 www.medical.siemens.com September DATAMONITOR

Head office: Telephone: Website: Financial year-end: Source: company website

Siemens Healthcare, a medical business sector of Siemens, develops, manufactures and markets diagnostic and therapeutic systems and devices, as well as information technology (IT) systems for clinical and administrative purposes. Siemens Healthcare also provides technical maintenance, professional and consulting services. Siemens formed its Healthcare business segment following its recent acquisitions in the field of in-vitro diagnostics. Siemens Healthcare operates through three business divisions: Imaging & Therapy Systems, Clinical Products, and Diagnostics. The Imaging & Therapy systems division covers a spectrum of image-based diagnostics and therapy. In the field of interventional imaging, Siemens offers an angiography solution based on industrial robotics with the Artis zeego, which can be used in a range of applications in cardiology, neurology or oncology. With the ARTISTE linear accelerator, Siemens offers a solution for radiotherapy which enables precise and quick treatment. Siemens Clinical Products Division addresses the largest imaging markets ultrasound and X-ray. Siemens Healthcare Diagnostics offers a portfolio of performance-driven systems, test menu, and IT solutions for the in vitro diagnostic needs of hospital labs, reference labs, physician office labs, and pointof-care testing. The sectors diagnostic solutions (chemistry, immunoassay, automation, hematology, hemostasis, microbiology, diabetes, urinalysis, blood gas, and molecular testing) are designed to streamline workflow and enhance operational efficiency. Siemens Healthcare Diagnostics has over 130,000 customers in more than 100 countries.

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LEADING COMPANIES

Siemens Healthcare has R&D and OEM cooperation agreements with companies, including with Bruker, in the field of magnetic resonance imaging; Toshiba, in the field of ultrasound and magnetic resonance imaging; Matsushita, for low- and mid-range ultrasound systems; and Jeol in the field of in-vitro diagnostics. In addition, the company has joint ventures including with Philips and Thales, to manufacture flat panel detectors for medical imaging; and with Mochida Pharmaceutical, in the field of ultrasound in Japan. Key Metrics The company recorded revenues of 12,364 million (approximately $16,378.8 million) in 2010, as compared to revenues of 11,927 million (approximately $15,799.9 million) in 2009. The net income totaled 748 million (approximately $990.9 million) in 2010, comparing to net income of 1,450 million (approximately $1,920.8 million) in 2009.

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LEADING COMPANIES

Medtronic, Inc.
Table 11: Medtronic, Inc.: key facts 710 Medtronic Parkway, Minneapolis, Minnesota 55432 5604 USA 1 763 514 4000 1 763 514 4879 ww.medtronic.com April MDT New York DATAMONITOR

Head office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange: Source: company website

Medtronic is a diversified medical device company. It develops and markets products and therapies in the areas of cardiac rhythm disorders, cardiovascular disease, neurological disorders, spinal conditions and musculoskeletal trauma, urological and digestive disorders, diabetes and ear, nose and throat conditions. Medtronic serves physicians, clinicians and patients in more than 120 countries. The company has research, manufacturing, education and sales facilities around the world. In FY2010, the company operated through seven business segments: cardiac rhythm disease management (CRDM), spinal, cardiovascular, neuromodulation, diabetes, surgical technologies and physio-control. However for FY2011, Medtronic organized its business into two operating groups: Cardiac and Vascular Group and Restorative Therapies Group. The Cardiac and Vascular Group comprises of three business segments: cardiac rhythm disease management (CRDM), CardioVascular and Physio-Control. The CRDM segment supplies medical devices for cardiac rhythm disease management. Its products are designed to treat and monitor a range of heart conditions, including bradycardia, tachyarrhythmia and heart failure. These products include pacemakers to treat patients with bradycardia, implantable cardioverter-defibrillators to help patients with tachyarrhythmia, and diagnostic and monitoring devices that diagnose heart-related syncope. Its cardiovascular segment develops and markets products and therapies to treat coronary artery disease (CAD), peripheral vascular disease (PVD), abdominal and thoracic aortic aneurysms and heart valve disorders.

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LEADING COMPANIES

Its products include coronary and peripheral stents and related delivery systems, endovascular stent graft systems, distal embolic protection systems, perfusion systems, positioning and stabilization systems for beating heart revascularization surgery, products for the repair and replacement of heart valves, surgical ablation products and a range of balloon angioplasty catheters, guide catheters, guidewires, diagnostic catheters and accessories. The company's physio-control segment develops, manufactures and markets external defibrillators, including manual defibrillator/monitors used by hospitals and emergency response personnel and automated external defibrillators (AEDs) used in commercial and public settings. In addition to the portfolio of external defibrillation and emergency response systems, Medtronic offers related data management solutions and support services. The Restorative Therapies Group consists of four business segments: spinal, neuromodulation, diabetes and surgical technologies. The spinal segment offers medical devices and implants used in the treatment of the spine and the musculoskeletal system. It provides products and therapies for treatment of the conditions, such as herniated disc, degenerative disc disease, spinal deformity, spinal tumors, and fracture of the spine and stenosis. These products include thoracolumbar products, cervical products, minimal access spinal technologies and biologics products. The neuromodulation segment provides devices for the treatment of pain, movement disorders, urological and gastroenterological disorders and psychological disorders. The products used to treat these conditions include implantable drug delivery systems (pain management) and deep brain stimulation systems (movement disorders). The diabetes segment develops, manufactures and markets devices for the treatment of diabetes. This includes insulin pumps, continuous glucose monitoring systems and therapy management software. The surgical technologies segment develops, manufactures and markets products and therapies to treat diseases and conditions of the ear, nose and throat (ENT), and certain neurological disorders. The segment markets Powered surgery systems and microendoscopy instruments, intraoperative nerve monitoring systems, and disposable and dissolvable fluid control products. It also provides image-guided surgery and intra-operative imaging systems that facilitate surgical planning during precision cranial, spinal, sinus and orthopedic surgeries. Key Metrics The company recorded revenues of $15,817 million in the fiscal year ending April 2010, an increase of 8.3% compared to fiscal 2009. Its net income was $3,099 million in fiscal 2010, compared to a net income of $2,169 million in the preceding year.
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LEADING COMPANIES

Table 12: $ million

Medtronic, Inc.: key financials ($) 2006 11,292.0 2,546.7 19,664.8 10,282.3 35,733 2007 12,299.0 2,802.0 19,512.0 8,535.0 37,800 2008 13,515.0 2,231.0 22,198.0 10,662.0 36,484 2009 14,599.0 2,169.0 23,661.0 10,810.0 38,000 2010 15,817.0 3,099.0 28,090.0 13,461.0 43,000

Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings

DATAMONITOR

Table 13: Ratio

Medtronic, Inc.: key financial ratios 2006 22.6% 12.3% 18.3% 66.7% 52.3% 14.0% $316,010 $71,270 2007 22.8% 8.9% (0.8%) (17.0%) 43.7% 14.3% $325,370 $74,127 2008 16.5% 9.9% 13.8% 24.9% 48.0% 10.7% $370,436 $61,150 2009 14.9% 8.0% 6.6% 1.4% 45.7% 9.5% $384,184 $57,079 2010 19.6% 8.3% 18.7% 24.5% 47.9% 12.0% $367,837 $72,070

Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings

DATAMONITOR

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LEADING COMPANIES

Figure 14: Medtronic, Inc.: revenues & profitability

Source: company filings

DATAMONITOR

Figure 15: Medtronic, Inc.: assets & liabilities

Source: company filings

DATAMONITOR

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MARKET FORECASTS

MARKET FORECASTS
Market value forecast
In 2015, the global health care equipment & supplies market is forecast to have a value of $370.7 billion, an increase of 13.4% since 2010. The compound annual growth rate of the market in the period 201015 is predicted to be 2.6%. Table 14: Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor Global health care equipment & supplies market value forecast: $ billion, 201015 $ billion 326.8 335.5 344.2 353.1 361.8 370.7 billion 246.1 252.6 259.2 265.9 272.5 279.2 % Growth 2.9% 2.7% 2.6% 2.6% 2.5% 2.4% 2.6% DATAMONITOR

Figure 16: Global health care equipment & supplies market value forecast: $ billion, 201015

Source: Datamonitor

DATAMONITOR

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APPENDIX

APPENDIX
Methodology
Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-checked and presented in a consistent and accessible style. Review of in-house databases Created using 250,000+ industry interviews and consumer surveys and supported by analysis from industry experts using highly complex modeling & forecasting tools, Datamonitors in-house databases provide the foundation for all related industry profiles Preparatory research We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview Definitions Market definitions are standardized to allow comparison from country to country. The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends Datamonitor aggregates and analyzes a number of secondary information sources, including: National/Governmental statistics International data (official international sources) National and International trade associations Broker and analyst reports Company Annual Reports Business information libraries and databases

Modeling & forecasting tools Datamonitor has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, regulatory and demand-related factors Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

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APPENDIX

Industry associations
Consumer Healthcare Products Association 900 19th Street, NW, Suite 700 Washington, DC 20006 Tel.: 1 202 429 9260 Fax: 1 202 223 6835 www.chpa-info.org Association for the Advancement of Medical Instrumentation 1110 North Glebe Road, Suite 220 Arlington, VA 22201-4795 Tel.: 1 703 525 4890 Fax: 1 703 276 0793 www.aami.org/index.htm American Health Care Association 1201 L Street, N.W., Washington, DC 20005 Tel.: 1 202 842 4444 Fax: 1 202 842 3860 www.ahca.org

Related Datamonitor research


Industry Profile Health Care Equipment & Supplies in Asia-Pacific Health Care Equipment & Supplies in Europe Health Care Equipment & Supplies in Canada Health Care Equipment & Supplies in the United States Health Care Equipment & Supplies in China

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APPENDIX

Disclaimer
All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Datamonitor plc. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Datamonitor can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

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ABOUT DATAMONITOR

ABOUT DATAMONITOR
The Datamonitor Group is a world-leading provider of premium global business information, delivering independent data, analysis and opinion across the Automotive, Consumer Markets, Energy & Utilities, Financial Services, Logistics & Express, Pharmaceutical & Healthcare, Retail, Technology and Telecoms industries. Combining our industry knowledge and experience, we assist over 6,000 of the worlds leading companies in making better strategic and operational decisions. Delivered online via our user-friendly web platforms, our market intelligence products and services ensure that you will achieve your desired commercial goals by giving you the insight you need to best respond to your competitive environment.

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