Healthcare TechnologyEgyptian Market Outlook

Usama Aly Hassan, CCE, EMD

Co-Founder and CEO

Egyptian Biomedical Engineering Group

Content

1. Healthcare Technology Definition

2. Healthcare technology through History

3. Healthcare Technology and Innovation

4. Global Medical Devices market

5. Egyptian Market OutlookA. Environment scan and Economic factors

B. Market Structure and Economic Moats

C. Market Opportunities

D. Market Development

Healthcare TechnologyThe healthcare technology is generally defined as Any intervention that may be

used for:

1. Prevention,

2. Diagnosis,

3. Treatment,

4. Rehabilitation

The healthcare technology can be segmented into:

1. Medical Devices

2. Procedures

3. Pharmaceuticals

4. Organizational Systems

The healthcare technology Aiming to

1. Enhancement

2. Effectiveness

3. Productivity

4. Cost Reduction

The artificial big toe is carved from wood and attached to foot by leather wrapping for cosmetic and function. Dental reconstructive work (bridge) . dated to 2000 BC.Egyptian Museum in CairoA squatting woman giving birth sitting on birthing chair, assisted by two goddessesSurgical instruments 600-200BC from bronze

Kohl for disinfection and treatment

Edwin papyriEbers papyri

All of the above and more based on innovations

Healthcare technology Patents And Innovations

The medical areas with unmet needs:1. Oncology2. Cardiovascular3. Orthopedic 4. Neurological diseases 5. Diabetes

Sou

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Wo

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Inte

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dic

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U.S.A

Japan

Others

Germany

China

Swizerland

United Kingdom

Republic of Korea

France

Netherlands

Sweden Canda

Russian Fedration AustraliaItalyFinland

WIPO, 2011

Global medical devices market

The global market share of medical devices by sector.1. Diagnostic imaging equipment (26%)2. Electro medical equipment (30%)3. Consumables (15%)4. Orthopedic and Prosthetic devices (13%)

Other Products

Diagnostic equipment

Consumables

Orthopaedic and prosthetic

devices

Patient Aids

Dental Products

Global medical devices market

CAGR

7

1,9

.8

3.6

Medical Devices Market: Forecast for GrowthRegion 2009 2010 2011 2012 2013 %Americas 102.4 107.1 112.1 117.4 122.8 43Asia/Pacific 42.5 46.1 49.9 54.3 58.9 21Central/E Europe 10.3 11.3 12.4 13.6 14.8 5M East/Africa 5.7 6.0 6.3 6.7 7.0 3Western Europe 62.3 66.7 71.6 76.9 82.5 29Total 223.2 237.2 252.3 268.9 286.0Source: Medical Market Fact Book

Americas

Asia/Pacific

Estern Europe

M East/Africa

Europe

The African Medical Device Market: Facts and Figures 2010

M US$Import

South Africa

Egypt

Algeria

Morocco

Tunisia

Libyan

Nigeria

Angola

Sudan

Kenya

Total

M US$Export

South Africa

Egypt

Mauritius

Morocco

Tunisia

Libyan

Swaziland

Madagascar

Sierra Leone

Kenya

Total

African medical devices market

• Environment scan and Economic factors

• Market Structure and Economic Moats

• Market Opportunities

• Market Development

Egyptian Market Outlook

Economic Technology Political & Legal Sociocultur

GDP Gross Domestic

Product

-Interest rate

-inflation rate

-Unemployment

-Wage

-Energy availability cost

Total spending in R&D

Patent protection

-New product

-New development

-technology transfer

Antitrust regulation

Environment

protection

-Low/Tax

- foreign trade reg.

Life style

Customer expectation-

Life expectancy

- Birth rates

Health care

- Level of education

4 forces have changed and will continue to change at a faster rate.

• Political stability and Economic growth

• Consumer incomes and ability to purchase health services

• Population growth

• Extended life expectancy

• Emergence of advanced medical treatments and technologies

Stem cells

Nanotechnology

Environment scan and Economic factors

Egypt’s Political and Economic Map

Source: AAIM

SCAF

Environment scan and Economic factors

Market structure and Economic MoatsStructure and Nature

• Egypt’s medical device market is the second largest in the Middle East.

• Medical devices contributed $538 million dollars to GDP(0.002%)

in 2011 which was 5.1% of total healthcare spending , In per capita US$ 6.

• The Ministry of Health operates ~ 1500 hospitals which correspond to a supply of 60% of beds. Universities, the Army and the private sector constitute the other 40%.

Egyptian Market structure and Economic

• Recent reports have indicated that the Egyptian government prefers investments in preventative medicine which is a specialty catered to medical devices.

• With the strong demand and less barriers to market, the medical device sector will be subjected for a substantial economic growth in the near future.

• The World Bank report 32% of the Egyptian population is under 14 and life expectancy for Egyptians has increased from 69 to 73 which need for investment in the healthcare industry.

• According to the World Bank, less than 5% of total investments are allocated toward health services

MARKET

Driving Forces

Egyptian Market structure and Economic Moats

Business Contacts

Increasing technical complexity

Low-bidding competitors

Rising

Overhead

Risingcustomer expectations

Aggressivecompetitor modes

Strategy and Competition

Egyptian Market Sectors Opportunities

Unmet needs opportunities in the following subsectors:

• Oncology and high-tech radiological equipment

• Highly specialized disposables

• High-tech surgical and medical equipment

• Software for hospital management/network

• ICU monitoring equipment

• Sophisticated laboratory and scientific equipment

• Mobile clinics

Market Opportunities Ratings

Market DevelopmentImport and Export

Market DevelopmentManufacturing for Global

Market Development

1- Broad Knowledge about the business

2- Global Market Driven not production Driven

3-World as a Market place not country Market place

4- Non-Traditional Markets (Stem Cell , Nanotechnology )

5- Environmental Concerns and Carbon Footprint

THANK YOU