Opportunities in Indonesian Diagnostic Industry
Category: Column By : Sanjeev Kumar Read : 471 Date : Friday, June 02, 2017 - 16:39:51

The Asian diagnostic market is going through a transformation propelled by the evolving pharmaceutical ecosystem. The growing prevalence of infectious diseases and hospital-acquired infections are driving the diagnostic market in the Asian region, including Indonesia.

Asian Diagnostic Market – Top Three Opportunities

Biomarker-Driven Clinical Trials

Biomarker-driven clinical trials are rapidly rising. There is a quest for pharmaceutical companies to search for relevant biomarkers at an early stage that goes directly with product development. In 2016, there were over 200 such clinical trials in the region. One such example is Ono pharmaceuticals partnering with Dako for the development of a companion diagnostic kit (CDx kit) for Opdivo in Japan.

Digital Pathology

Digital pathology, though at nascent stages of adoption, is expected to witness a tremendous growth in future. Asia represents the largest opportunity, as clinical labs are undergoing radical changes in adopting high-tech and automation. Main drivers for such adoption include shortage of specialized pathologists, need for integrated diagnostic platforms to ensure seamless care pathway, and the need to demonstrate high throughput capacity and increase efficiency, hence motivating hospitals and clinical labs to adopt digital pathology solutions.

E-Commerce

Tremendous growth in e-commerce has been witnessed in the healthcare industry, especially online pharmacies propelling the growth of POCT tests and rapid diagnostic tests (RDTs) for home use that was previously restricted to primary care centers and GP clinics. China and India are classical examples of markets that have seen a tremendous rise in the medical & diagnostic device market through online pharmaceuticals gateway. E-commerce platforms such as T-mall, JD.com, and Kang Fu Zhi Jia are prominent sales channels for Chinese home use device consumers.

China is making conscious efforts in developing a local ecosystem to encourage R&D and local manufacturing and, support the growing need for the diagnostic industry as a part of their long-term goal. Also, reforms in China’s healthcare policy to introduce healthcare coverage by 2020 are expected to attract huge investment in IVD industry. Japan is moving towards preventive healthcare. The concept of pre-emptive diagnostics is gradually gaining acceptance in the Japanese market, as there is a gradual transition towards value-based healthcare systems, which is expected to take the center stage in least than four years.  ASEAN is getting a universal health coverage boost. ASEAN’s healthcare market is predicted to be worth $137 billion in the year 2025. In addition to booming medical tourism, there would be substantial investments in the expansion of private healthcare infrastructure including hospital and private labs in Malaysia, Vietnam, Indonesia, Thailand, and the Philippines.  

Overall, diagnostic is a fast growing segment in APAC. A significant rise in healthcare expenditure, universal coverage, an aging population and willingness to pay among consumers are key aspects for diagnostic companies to focus on in the region. Considering these facts, companies have to adopt unique market access strategies beyond technology and product differentiation, owing to the diverse landscape in this region. 



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