INDUSTRY NEWS
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The market for over-the-counter diagnostic products will surge in the coming years. Pictured is a prototype wireless diabetes monitor developed by Cambridge Consultants and Philips.
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The good news for IVD manufacturers is that the market for over-the-counter (OTC) diagnostic tests is poised for exceptional growth. The bad news? Many of them are ill-prepared to reap the rewards.
A workshop organized by Cambridge Consultants (Cambridge, UK) in late June brought together senior thought leaders from across Europe to discuss the future of diagnostics as a consumer-driven market. They came to the consensus that manufacturers will miss out on the tremendous opportunities coming down the pike unless they shake off the business-as-usual mind-set and make an effort to collaborate with consumer and pharmaceutical firms.
Current OTC devices for glucose and pregnancy testing will increasingly be joined on store shelves by in-home products for cholesterol, obesity, and cardiovascular conditions. Countries in Europe with centralized healthcare providers constitute the most fertile ground for these new devices, according to workshop delegates. As they face an increasing burden of care, these providers have extra incentives to make use of nontraditional outlets for patient testing.
Cambridge Consultants predicts that the OTC IVD market will grow by at least 5% CAGR between 2005 and 2010 to reach US$690 million. Beyond 2010, the market is expected to expand more into the consumer sector to possibly rival glucose testing, which currently stands at US$6 billion. To profit from this trend, however, IVD manufacturers must be prepared to rethink the way they do business, says Simon Burnell, head of the diagnostics group at Cambridge Consultants and author of a report based on the workshop.
“Diagnostics companies everywhere should be feeling anxious. Reaching this new market involves significant change and investment,” stresses Burnell. That is why attendees at the conference identified collaboration as the way forward, he adds. “Successful collaborations among key players from the pharmaceutical, diagnostics, and consumer sectors will create a powerful and convincing offering for consumers,” says Burnell.
A free copy of the report can be requested at www.cambridgeconsultants.com/fm_diagnostics_07.shtml.
For more information, contact Cambridge Consultants Ltd., Science Park, Milton Rd., Cambridge CB4 0DW, UK; phone: +44 1223 420024; fax: +44 1223 423373; e-mail: info@cambridgeconsultants.com; Internet: www.cambridgeconsultants.com.
