Blood Shortage Points to Role for Private Blood Supplies Market

A blood shortage of 50,000 pints announced by the American Red Cross points to the need for a healthy blood supplies market and more private contractors than just the ARC, which is subject to such shortages.  The blood supplies for the American Red Cross have reached emergency levels.  The Red Cross said blood donations were down  in June, and it is urging all eligible donors to give blood.   Donors have to be in good health, at least 17 years old, and weigh at least 110 pounds to be eligible for blood donation.his shortfall leaves the Red Cross with half the readily available blood products on hand now than this time last year.  All blood types are needed, but especially O positive, O negative, B negative and A negative in order to meet patient demand

According to Kalorama Information's report, the ARC controls 44% of the nation's blood supply.   But a shortage in its operations can have dramatic impact nationally.  

Kalorama's report on blood markets tackles this topic and projects markets and market share: Blood: The Worldwide Market for Blood Products, Blood Testing, Blood Equipment and Synthetic Blood Products.         

http://www.kaloramainformation.com/Blood-Worldwide-Products-2849156/

Device Tax Stays For Now, As a Result of SCOTUS Decision on Healthcare Reform

NEW YORK, NY--(Marketwire - Jun 28, 2012) - While supporters and opponents of President Obama's healthcare reform legislation let out boos or cheers for the recent decision of the United States Supreme Court, one industry will not be pleased, according to Kalorama Information. The healthcare market research publisher says that the medical device industry will face additional costs because of a tax provision in the act that is set to begin in January of next year. This will likely be of concern to the $322 billion world medical device industry, according to Kalorama Information. 

The Patient Protection and Affordable Care law included new tax provisions intended to help fund healthcare reform, which require device manufacturers to pay a 2.3% excise tax on "taxable medical device" sales beginning January 1, 2013. The tax applies to medical device products intended for human use, but exempts eyeglasses, contact lenses, and hearing aids, as well as devices that are "generally purchased by the general public for retail or individual use." Some companies have warned investors of the taxes they expect to pay in 2013 as a result of the tax:

·         Johnson and Johnson, the largest device company, estimated that it will pay between $200-$250 million under the new law

·         Teleflex stated it would face $15 million in charges

·         Becton Dickinson said that 80% of its US revenues would be subject to taxes

Source: company 2011 annual reports

"These fees are not large compared to total revenues of the companies, but the burden of the fees is a concern for an industry that has been recovering from the recession," said Bruce Carlson, Publisher of Kalorama Information. "It will affect costs and profits, may affect R&D spending and may encourage cost-saving options such as outsourcing more production."

Kalorama notes that the Medical Device Manufacturers Association (MDMA) and other groups have fought to reduce the target size of the tax, as well as the rate. The group is currently working to repeal or change the provision in the Healthcare Reform bill. The repeal of the tax, popular in the medical device industry, has thus far been unsuccessful.

Kalorama Information's report, The Global Market for Medical Devices, 3rd Edition, includes profiles of companies in the industry, market sizing, forecasts and regional breakouts of the world device market, products in development and much more information. 

Healthcare Reform: Winners and Losers

The recent decision of the United States Supreme Court upholding the 2010 Patient Protection and Affordable Care Act, known generally as the healthcare reform bill leaves intact the mechanisms of concern to the industry and the provisions that some in the industry will look forward to in business planning.   These include an expanding patient base with potential for new customers, tax credits for a few select industries and taxes on pharmaceutical and medical device industry.     

Therefore Kalorama Information’s 2010 analysis of this law- including the likely impact on various healthcare stakeholders - will apply and may be of use to some healthcare customers today.  A lot of the industry has been ‘putting off’ consideration of the provisions pending the Court decision, so this may be a timely reminder of the provisions of the bill and expected industry impact from analyst Alison Sahoo.    There is no charge for the White Paper, though registration including a valid credit card number is required for our website. 

http://www.kaloramainformation.com/Healthcare-Reform-Winners-2625403/

“Speed-Healing” Products Drive Wound Care Market

An array of new strategies is enhancing the healing time of wounds and boosting revenues at device makers, according to Kalorama Information.  Driven by innovative products that heal wounds faster and increased wound occurrence, the worldwide wound care market reached revenues of $16.1 million in 2011, per our just released report on wound care products and devices. 

 Several of the products within the worldwide wound care market are mature such as anti-infectives and pressure relief devices, while others such as biological dressings and negative pressure wound therapy are in the infant stages of development.  Conventional, mature products continue to generate the majority of sales; however, their growth rate is slow whereas the new biological products are growing faster and operate with less competitive activity.  Speed-healing products such as growth factors and protease modulating wound dressings are among the type of products showing stronger revenue growth as they demonstrate good results.

Kalorama Information’s recently published report World Wound Care Markets (Skin Ulcer, Burns, Surgical/Trauma) contains more information on this title including products, competitors in the market, revenue estimates for segment markets and regional breakouts for United States, Europe, Asia and other regions.  The report can be purchased at:  http://www.kaloramainformation.com/Wound-Care-Skin-7032918/

Some Companies Show Higher Revenue Growth in Animal Diagnostics

A trend noted in our Veterinary Diagnostics report:  Some companies have seen higher rates of revenue growth in animal diagnostics than the average in human diagnostics, in vitro diagnostics.  According to our most recent report on the IVD industry, the rate of growth for human IVD products (including instruments and reagents) is 6%.  In many cases products show lower revenue growth, as basic chemistry tests are sold through group purchasing and competition is solidified.  High growth molecular testing, FISH histology testing  and other areas drive the total growth rate of human IVD up.  In general, when the total market is considered, the veterinary diagnostic market does not grow any faster than the human IVD market.  But in some product lines, revenue growth is faster.

At least two companies covered in our report have found veterinary diagnostics to be a source of revenue growth.  IDEXX and Abaxis, among the top veterinary diagnostic companies have seen 8% or greater revenue growth in recent years.  Part of that is from sales of food animal tests to the EU and emerging nations, though those markets as noted in Kalorama Key Point earlier this week, is declining.  Companion animal testing has increased due to high-income pet owners making veterinary visits and spending where needed to test for diseases.

Both IDEXX and Abaxis have product lines in human diagnostics, though most of their money is made in veterinary diagnostics.  These companies show that the model of using animal diagnostics to launch in IVD can work.

Our report covers some of the areas of vet dx that are experiencing the highest growth rates and pushing this market to over a billion dollars.  

Veterinary Diagnostics: Food Testing Suffers in EU

What goes up must go down, and the intensity of concern over animal testing in the European Union nations led to impressive gains in the food animal diagnostics markets in the last decade.  This has, as of recent years, slowed down a bit.    So notes Kalorama analyst Emil Salazar in our most recent edition of Veterinary Diagnostics.

"Strong rates of growth in the historical food animal diagnostics market were diluted late in 2008-2012 by declining TSE testing volumes, restrained public expenditures on animal disease control, economic recession, and recent fiscal weakness in the primary European market."

Even for the most important food safety concerns, there is still a limit to how much testing.  Testing in any market, human or animal, is never done at 100% of potential testing, and every diagnostic manufactuer plans accordingly.   Several diagnostic companies, including a Big Six but then a dozen other concerns, are still expanding in animal diagnostics and finding alternative markets to compete in than the highly regulated human diagnostics market.  The report notes growth  in the US in emerging markets, and in the pet animal market.  The report covers all aspects of veterinary diagnostics including reagent and POC sales as well as instrument sales.  Trends in pet ownership and pet spending are noted in the report, as well as food animal trends driving the market.  

Tennessee, Other States More Aggressive with Medicare Reimbursement

Reimbursement for increasingly expensive healthcare treatments and long term care is an issue and states are finding more drastic solutions.  Even if property is willed, a state can still go after it to seek reimbursement of costs, or so the Tennessee Supreme Court ruled last week that the state's Medicaid program can go after the willed property of deceased patients who received long-term or nursing home care, as reported in Fierce Healthcare

The Volunteer State's High Court reversed the ruling of a lower court that the TennCare program could not seek the home of Ardell Hamilton Trigg, who had willed the home to relatives, the article noted.  The court's vote was unanimous on the matter.  Trigg had received care from the TennCare program between 2002 and 2006, when she died, according to the AP.  and incurred 22,000 in costs.

Long Term Care is a key source of bills for Medicaid.  Despite public perception to the contrary, Medicare does not pay for long term care and a provision in the recent Healthcare Reform Legislation for a funding mechanism was ruled out due to cost. Our report on this topic addresses how the industry is affected by these reimbursement challenges.http://www.kaloramainformation.com/Term-Care-Nursing-6849604/