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September 12, 2013
1 Min Read
As demand for healthcare in emerging markets increases, many manufacturers are looking for effective ways to target these high-growth regions. According to analysts, the global medical device market could reach a total value of $302 billion in the next 48 months. However, there are some significant challenges that manufacturers must overcome to achieve success in these markets.
Since many emerging markets adopt regulatory systems similar to those of developed markets, some regions are plagued with bureaucratic inefficiencies and excessive paperwork. While these emerging market regulatory initiatives are designed to improve medical device safety and efficacy for patients, administration of them may be poor. Because of this, it's essential for manufacturers to have a solid understanding of emerging market regulatory environments before attempting any exports.
While undeveloped regions often have populations skewed towards younger ages, developing markets usually show an upward trend in age. Because of this, healthcare costs in these regions are on the rise. To address these burdensome costs, some developing countries, like India, provide lower reimbursement for healthcare technologies. These can come in the form of pool reimbursements, mandatory price reductions and price caps. Manufacturers must be prepared for lower reimbursements in these regions.
Since patent protections are usually weak in developing markets, protecting intellectual property in these areas can be a daunting challenge. In particular, many medical device companies face a significant number of counterfeit devices. Since counterfeit devices can impact consumer brand perception, manufacturers must find proactive ways to eliminate these infringing devices from emerging markets.
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