Research and Markets: In-vitro Diagnostics (IVD) Market Outlook in China

DUBLIN--(BUSINESS WIRE)-- Research and Markets (http://www.researchandmarkets.com/research/13f0e8/invitro_diagnosti) has announced the addition of Frost & Sullivan's new report "In-vitro Diagnostics (IVD) Market Outlook in China" to their offering.

Expanding Access to Healthcare in Rural Areas of China Boosts the In-vitro Diagnostics Market in the Country

The Government Encourages Hospitals and Laboratories to Adopt IVD Products Manufactured by Local Companies

The Chinese in-vitro diagnostics (IVD) market is expected to register a double-digit growth rate of 15.3 per cent in 2011 due to expanding healthcare services in the rural areas and an ageing population that requires high volumes of clinical tests. The wider access to healthcare is likely to benefit people who are located in semi-urban and rural areas, which will catalyse the revenue growth in the market. The rapid economic development in China has created an epidemiologic shift in infections, causing a higher number of people to become susceptible to infections and these rising infection rates provide more opportunities to immunoassays and molecular diagnostic companies to develop new and efficient test kits. The growing middle class population in China demand better healthcare services, which accelerates market growth, says the analyst of this research service. For them, price is not the main concern - advanced medical technology is. With disease prevention becoming more important than treatment, a focus on preventative healthcare services that covers a wide population will boost the market.

While only about 1,000 IVD techniques are currently available in China, more than 6,000 exist in the West. The multinationals dominate the high-end Chinese IVD market and the local companies compete fiercely in the low-end market with low profit margins. Most of them lack funding or the capability to innovate. The high market entry barriers coupled with the pressure of developing competing technologies against multinational companies are major challenges for local companies. Also, there is no regulation in the laboratory testing procedures. The Government's initiatives to regulate laboratory testing will help the expansion of the clinical diagnostic industry, observes the analyst of this research service. The Government's undergoing guidelines of price indices for medical devices and the released reimbursement list of products for basic medical insurance encourages the adoption of local products.

The Ministry of Human Resource and Social Security (MOHRSS) issued a national guidance listing the range of medical diagnosis and treatment items, including IVDs, that provincial governments can partially reimburse and those that cannot be reimbursed. The low reimbursement rate of the basic medical care insurance for clinical tests will impede its growth, especially among people living outside major cities.