Cybrary on 7/30/2015. MarketLine. (2014). Health care ... analysis The US health care equipment & supplies market has seen moderate growth in recent years but increased growth is projected

This resource was retrieved from the Business Source Complete database in the CEC Cybrary on 7/30/2015.

MarketLine. (2014). Health care equipment & supplies in the United States, 1–34.

This resource was retrieved from the Business Source Complete database in the CEC Cybrary on 7/30/2015.

MarketLine. (2014). Global health care equipment & supplies, 1–30.

United States - Health Care Equipment & Supplies 0072 - 2067 - 2013

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

MarketLine Industry Profile

Health Care Equipment & Supplies in the United States October 2014

Reference Code: 0072-2067

Publication Date: October 2014

WWW.MARKETLINE.COM

MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED



EXECUTIVE SUMMARY

Market value The United States health care equipment & supplies market grew by 4.6% in 2013 to reach a value of $141,953.1 million.

Market value forecast In 2018, the United States health care equipment & supplies market is forecast to have a value of $182,711.7 million, an

increase of 28.7% since 2013.

Category segmentation Disposable equipment & supplies is the largest segment of the health care equipment & supplies market in the United

States, accounting for 39.9% of the market's total value.

Geography segmentation The United States accounts for 39.2% of the global health care equipment & supplies market value.

Market rivalry The US health care equipment & supplies market is characterized by the presence of large, international incumbents,

which increases rivalry somewhat.



TABLE OF CONTENTS

Executive Summary ....................................................................................................................................................... 2

Market value ............................................................................................................................................................... 2

Market value forecast ................................................................................................................................................. 2

Category segmentation .............................................................................................................................................. 2

Geography segmentation ........................................................................................................................................... 2

Market rivalry .............................................................................................................................................................. 2

Market Overview ............................................................................................................................................................ 7

Market definition ......................................................................................................................................................... 7

Market analysis .......................................................................................................................................................... 7

Market Data ................................................................................................................................................................... 8

Market value ............................................................................................................................................................... 8

Market Segmentation ..................................................................................................................................................... 9

Category segmentation .............................................................................................................................................. 9

Geography segmentation ......................................................................................................................................... 10

Market Outlook ............................................................................................................................................................. 11

Market value forecast ............................................................................................................................................... 11

Five Forces Analysis .................................................................................................................................................... 12

Summary .................................................................................................................................................................. 12

Buyer power ............................................................................................................................................................. 13

Supplier power ......................................................................................................................................................... 14

New entrants ............................................................................................................................................................ 15

Threat of substitutes ................................................................................................................................................. 16

Degree of rivalry ....................................................................................................................................................... 17

Leading Companies ..................................................................................................................................................... 18

Abbott Laboratories .................................................................................................................................................. 18

Boston Scientific Corporation ................................................................................................................................... 21

Johnson & Johnson .................................................................................................................................................. 24

Medtronic, Inc. .......................................................................................................................................................... 27

Macroeconomic Indicators ........................................................................................................................................... 30

Country Data ............................................................................................................................................................ 30

Appendix ...................................................................................................................................................................... 32



Methodology ............................................................................................................................................................. 32

Industry associations ................................................................................................................................................ 33

Related MarketLine research ................................................................................................................................... 33



LIST OF TABLES

Table 1: United States health care equipment & supplies market value: $ million, 2009–13 ......................................... 8

Table 2: United States health care equipment & supplies market category segmentation: $ million, 2013 .................... 9

Table 3: United States health care equipment & supplies market geography segmentation: $ million, 2013 ............... 10

Table 4: United States health care equipment & supplies market value forecast: $ million, 2013–18 .......................... 11

Table 5: Abbott Laboratories: key facts ........................................................................................................................ 18

Table 6: Abbott Laboratories: key financials ($) ........................................................................................................... 19

Table 7: Abbott Laboratories: key financial ratios......................................................................................................... 19

Table 8: Boston Scientific Corporation: key facts ......................................................................................................... 21

Table 9: Boston Scientific Corporation: key financials ($) ............................................................................................ 22

Table 10: Boston Scientific Corporation: key financial ratios ........................................................................................ 22

Table 11: Johnson & Johnson: key facts ...................................................................................................................... 24

Table 12: Johnson & Johnson: key financials ($) ......................................................................................................... 25

Table 13: Johnson & Johnson: key financial ratios ...................................................................................................... 25

Table 14: Medtronic, Inc.: key facts .............................................................................................................................. 27

Table 15: Medtronic, Inc.: key financials ($) ................................................................................................................. 28

Table 16: Medtronic, Inc.: key financial ratios .............................................................................................................. 28

Table 17: United States size of population (million), 2009–13 ..................................................................................... 30

Table 18: United States gdp (constant 2005 prices, $ billion), 2009–13 ...................................................................... 30

Table 19: United States gdp (current prices, $ billion), 2009–13 .................................................................................. 30

Table 20: United States inflation, 2009–13 .................................................................................................................. 31

Table 21: United States consumer price index (absolute), 2009–13 ............................................................................ 31

Table 22: United States exchange rate, 2009–13 ........................................................................................................ 31



LIST OF FIGURES

Figure 1: United States health care equipment & supplies market value: $ million, 2009–13 ........................................ 8

Figure 2: United States health care equipment & supplies market category segmentation: % share, by value, 2013 ... 9

Figure 3: United States health care equipment & supplies market geography segmentation: % share, by value, 201310

Figure 4: United States health care equipment & supplies market value forecast: $ million, 2013–18......................... 11

Figure 5: Forces driving competition in the health care equipment & supplies market in the United States, 2013 ....... 12

Figure 6: Drivers of buyer power in the health care equipment & supplies market in the United States, 2013 ............ 13

Figure 7: Drivers of supplier power in the health care equipment & supplies market in the United States, 2013 ......... 14

Figure 8: Factors influencing the likelihood of new entrants in the health care equipment & supplies market in the United

States, 2013 ................................................................................................................................................................. 15

Figure 9: Factors influencing the threat of substitutes in the health care equipment & supplies market in the United

States, 2013 ................................................................................................................................................................. 16

Figure 10: Drivers of degree of rivalry in the health care equipment & supplies market in the United States, 2013 .... 17

Figure 11: Abbott Laboratories: revenues & profitability ............................................................................................... 20

Figure 12: Abbott Laboratories: assets & liabilities....................................................................................................... 20

Figure 13: Boston Scientific Corporation: revenues & profitability ................................................................................ 23

Figure 14: Boston Scientific Corporation: assets & liabilities ........................................................................................ 23

Figure 15: Johnson & Johnson: revenues & profitability .............................................................................................. 26

Figure 16: Johnson & Johnson: assets & liabilities ...................................................................................................... 26

Figure 17: Medtronic, Inc.: revenues & profitability ...................................................................................................... 29

Figure 18: Medtronic, Inc.: assets & liabilities .............................................................................................................. 29



MARKET OVERVIEW

Market definition The health care equipment & supplies market analyzes manufacturers of health care equipment, medical devices and

supplies. The market profile covers disposable equipment and supplies such as syringes, catheters, electrodes, sutures,

bandages, implantable prostheses, orthotics and prosthetics; otologic & technical aids such as hearing aids and

wheelchairs; ophthalmic equipment such as eye glasses, contact lenses and ophthalmoscopes; in vitro diagnostics such

as devices for clinical chemistry, microbiology, immunology and genetic tests; and other equipment such as imaging

equipment and films and equipment for radiotherapy, dialysis, endoscopy, anesthetics, etc.

Market value refers to the revenues generated through the sale of health care equipment and supplies. The market is

valued at manufacturers’ selling price with any currency conversions calculated using constant 2013 annual average

exchange rates

For the purposes of this report, the Americas consists of North America and South America.

North America consists of Canada, Mexico, and the United States.

South America comprises Argentina, Brazil, Chile, Colombia, and Venezuela.

Market analysis The US health care equipment & supplies market has seen moderate growth in recent years but increased growth is

projected and fairly strong expansion is forecast through to 2018.

The US health care equipment & supplies market had total revenues of $141,953.1m in 2013, representing a compound

annual growth rate (CAGR) of 4.5% between 2009 and 2013. In comparison, the European and Asia-Pacific markets

grew with CAGRs of 3.2% and 9.1% respectively, over the same period, to reach respective values of $116,953.5m and

$75,895.8m in 2013.

The disposable equipment & supplies segment was the market's most lucrative in 2013, with total revenues of

$56,683.2m, equivalent to 39.9% of the market's overall value. The technical aids segment contributed revenues of

$19,182.7m in 2013, equating to 13.5% of the market's aggregate value.

The performance of the market is forecast to accelerate, with an anticipated CAGR of 5.2% for the five-year period 2013

- 2018, which is expected to drive the market to a value of $182,711.7m by the end of 2018. Comparatively, the

European and Asia-Pacific markets will grow with CAGRs of 4.6% and 8.4% respectively, over the same period, to reach

respective values of $146,360.0m and $113,480.9m in 2018.



MARKET DATA

Market value The United States health care equipment & supplies market grew by 4.6% in 2013 to reach a value of $141,953.1 million.

The compound annual growth rate of the market in the period 2009–13 was 4.5%.

Table 1: United States health care equipment & supplies market value: $ million, 2009–13

Year $ million € million % Growth

2009 119,051.7 89,640.6

2010 124,944.8 94,077.8 5.0%

2011 131,524.6 99,032.1 5.3%

2012 135,684.0 102,164.0 3.2%

2013 141,953.1 106,884.4 4.6%

CAGR: 2009–13 4.5%

SOURCE: MARKETLINE M A R K E T L I N E

Figure 1: United States health care equipment & supplies market value: $ million, 2009–13




MARKET SEGMENTATION

Category segmentation Disposable equipment & supplies is the largest segment of the health care equipment & supplies market in the United

States, accounting for 39.9% of the market's total value.

The Other equipment segment accounts for a further 19.3% of the market.

Table 2: United States health care equipment & supplies market category segmentation: $ million, 2013

Category 2013 %

Disposable equipment & supplies 56,683.2 39.9%

Other equipment 27,384.5 19.3%

Technical aids 19,182.7 13.5%

Dental surgery equipment & supplies

15,981.9 11.3%

IV diagnostics 13,343.3 9.4%

Ophthalmic equipment 9,377.7 6.6%

Total 141,953.3 100%


Figure 2: United States health care equipment & supplies market category segmentation: % share, by value, 2013




Geography segmentation The United States accounts for 39.2% of the global health care equipment & supplies market value.

The Europe accounts for a further 32.3% of the global market.

Table 3: United States health care equipment & supplies market geography segmentation: $ million, 2013

Geography 2013 %

United States 141,953.1 39.2

Europe 116,953.5 32.3

Asia-Pacific 75,895.8 21.0

Rest of the World 26,964.4 7.5

Total 361,766.8 100%


Figure 3: United States health care equipment & supplies market geography segmentation: % share, by value, 2013




MARKET OUTLOOK

Market value forecast In 2018, the United States health care equipment & supplies market is forecast to have a value of $182,711.7 million, an

increase of 28.7% since 2013.

The compound annual growth rate of the market in the period 2013–18 is predicted to be 5.2%.

Table 4: United States health care equipment & supplies market value forecast: $ million, 2013–18

Year $ million € million % Growth

2013 141,953.1 106,884.4 4.6%

2014 145,520.0 109,570.0 2.5%

2015 155,697.4 117,233.2 7.0%

2016 164,513.8 123,871.6 5.7%

2017 173,653.2 130,753.1 5.6%

2018 182,711.7 137,573.8 5.2%

CAGR: 2013–18 5.2%


Figure 4: United States health care equipment & supplies market value forecast: $ million, 2013–18




FIVE FORCES ANALYSIS

The health care equipment & supplies market will be analyzed taking manufacturers of health care equipment as players.

The key buyers will be taken as hospitals, clinics, outpatient facilities, and medical offices, and raw material producers as

the key suppliers.

Summary

Figure 5: Forces driving competition in the health care equipment & supplies market in the United States, 2013


The US health care equipment & supplies market is characterized by the presence of large, international incumbents,

which increases rivalry somewhat.

The number of buyers present within the US health care equipment and supplies market is limited, which serves to

increase buyer power and negotiating position, especially in the US where group purchasing organizations are common.

Market players are heavily dependent upon suppliers of raw materials. Suppliers are typically large scale companies that

can negotiate on price and the quality of inputs is of paramount importance, which strengthens their position.

There exist high entry barriers, often imposed by leading incumbents, but also due to the stringent hygiene and quality

demands of buyers. A proven track record is highly advantageous.

Rivalry is alleviated slightly by the fact that main players have diversified operations. However, to succeed within this

market, extensive research capabilities, as well as the ability to meet stringent government regulations are essential.



Buyer power

Figure 6: Drivers of buyer power in the health care equipment & supplies market in the United States, 2013


The number of buyers within the US health care equipment and supplies market is limited, meaning that leading

incumbents are competing with each other to assure purchases. This means buyers hold a certain degree of power over

market players.

As buyers are typically small in size compared to main players, they can negotiate a better price using group purchasing,

which enhances buyer power further. Group purchasing organizations (GPOs) such as Amerinet and MedAssets are

therefore commonplace, particularly in the US. For example the former states that its members saved $1.19bn by

purchasing through its network of contacts in 2012.

Switching costs in this market are negligible due to the undifferentiated nature of products and the fact that many of the

major manufacturers provide for all areas of healthcare. Furthermore, the advancement of e-procurement systems

means that buyers are more knowledgeable about products and therefore prices. This increases competition between

market players and serves to increase buyer power. Buyers, however, seek high quality and reliability, which reduces

their power somewhat as market players can increase their prices accordingly.

Recent economic difficulties have seen disposable incomes shrink meaning that consumers are becoming more cost-

conscious, resulting in a decreasing number of surgical procedures and pricing pressures. Consumer habits have

therefore altered with many opting for cheaper over-the-counter products increasing the pressure on manufacturers

further.

Traditionally, branding had little impact upon this market. However, players are now aiming to strengthen their brands in

order to gain a greater market share. For example, in September 2012, Toshiba Medical Systems announced it had

signed a deal with Manchester United Football Club to provide medical equipment to the club's medical team. In sport,

the health and physical well-being of players is central to a team's success, and the trust of such a well-known club, it is

hoped, will strengthen the Toshiba brand. GE, while not having an official sponsorship contract, has a strong presence

within the NFL as it too looks to strengthen its brand via association. For example, GE is currently working closely with

the NFL to develop concussion detecting imaging technology to combat a major concern within the sport.

Overall, buyer power is assessed as moderate.



Supplier power

Figure 7: Drivers of supplier power in the health care equipment & supplies market in the United States, 2013


Raw materials manufacturers constitute the main suppliers to the health care equipment & supplies market.

In most cases, market players will source inputs from a variety of suppliers to reduce their dependence on a single

provider; however, in some cases, players are reliant upon one company for specific materials. Such suppliers are

usually large in nature due to the inherent large-scale operation involved in production. They are therefore able to

negotiate on price, which strengthens their position somewhat.

However, there is little differentiation in supply materials, meaning that market players can opt for cheaper deals with

varying companies, although given the importance of hygiene and safety in this market, suppliers with a proven record

may hold an advantage over those that do not, regardless of price. The presence of contracts usually indicates penalties

upon termination of a contract, imposing switching costs and increasing supplier power to some extent.

Raw materials are subject to fluctuations in price, which can negatively affect a company’s profitability. Market players

may purchase inputs on the open market, but doing so they lose control over prices.

Overall, supplier power in this market is moderate.



New entrants

Figure 8: Factors influencing the likelihood of new entrants in the health care equipment & supplies market in the United States, 2013


The market is dominated by large scale international incumbents that benefit from scale economies, meaning they can

negotiate heavily on price.

Research is highly important for players’ revenues, as buyers are increasingly cost aware, meaning they are unlikely to

invest in equipment or supplies which offer little improvement over previous models. In addition to this, players must

adapt to constant technological and scientific advancements in order to compete successfully with others. Large scale

operations and strong research and development centers allow such players to easily expand into various geographical

areas and tap a share of emerging markets.

There is a large degree of regulation present within the market concerning product labeling requirements, promotion and

marketing schemes, quality system requirements, record keeping and medical device reporting. New entrants must gain

approval for a new product through ensuring third-party sponsors of the cost effectiveness of the product in question.

This will typically involve a time consuming and expensive clinical trial. Furthermore, increased government regulation

could increase compliance costs which will, in turn, reduce revenues.

However, brand identity in this market is minimal, with customers more concerned about quality and price, although the

major players are making efforts to change this via brand strengthening. Low switching costs, easily accessible suppliers

and distribution channels also prove enticing for new players. However, as part of the Patient Protection and Affordable

Care Act, known by its political moniker "Obamacare", medical devices have been subject to a 2.3% tax since January 1,

2013, which may make it more difficult for new entrants to compete.

Overall, there is a moderate likelihood of new entrants to the market.



Threat of substitutes

Figure 9: Factors influencing the threat of substitutes in the health care equipment & supplies market in the United States, 2013


There are no viable substitutes to health care equipment and supplies due to their specialized nature. The threat of

substitutes in this market is correspondingly very weak.



Degree of rivalry

Figure 10: Drivers of degree of rivalry in the health care equipment & supplies market in the United States, 2013


The health care equipment & supplies market is characterized by the presence of large scale international incumbents,

increasing the level of rivalry. Such companies are large in nature, and therefore benefit from scale economies, meaning

they can negotiate more intensely on price. Such players are able to differentiate themselves through extensive research

and development, reducing rivalry to an extent, although it should be noted that many of the major players manufacture

the same, wide range of expenditure.

Additionally, many players operate in a wide range of markets. For example, Johnson & Johnson stands as one of the

most diverse health care companies, both in terms of its pharmaceutical portfolio, but also due to its large medical

devices & diagnostics and consumer health divisions. The company is additionally strengthened by its large, international

sales force. This diversification reduces the company's dependence upon any one area of operations, reducing rivalry.

The same is also true of players such as GE, Samsung, Siemens, & Toshiba. A strong product portfolio increases

financial stability, and provides the necessary funds to complete more research and expand operations into other

geographical regions. Fairly strong growth in recent years helps to reduce rivalry to some degree.

Overall, rivalry within the market is moderate.



LEADING COMPANIES

Abbott Laboratories

Table 5: Abbott Laboratories: key facts

Head office: 100 Abbott Park Road, Abbott Park, Illinois 60064 6400, USA

Telephone: 1 847 937 6100

Website: www.abbott.com

Financial year-end: December

Ticker: ABT

Stock exchange: New York

SOURCE: COMPANY WEBSITE M A R K E T L I N E

Abbott Laboratories (Abbott or 'the company') is a global health care company engaged in the discovery, development,

manufacture and marketing of branded generic pharmaceuticals, nutritional products, medical devices, and diagnostics.

The company has a presence in several countries, with major operations in the US, the Netherlands, Germany, Japan,

Italy, France, Canada, the UK and Spain.

In FY2013, the company operated through four segments: nutritional products, established pharmaceutical products,

diagnostic products, and vascular products. In addition, the company also supplies products under its 'other business'.

The nutritional products segment manufactures, markets, and sells a range of pediatric and adult nutritional products.

These products are sold under various brands, which include Similac, Isomil, Gain, Grow, Alimentum, Jevity, Glucerna,

Osmolite, Oxepa, Freego, Nepro, Ensure, Hunger Smart, ProSure, PediaSure, PediaSure Sidekicks, EleCare, Juven,

Abound, and Pedialyte.

The company's established pharmaceutical products segment manufactures products, which include a broad line of

branded generic pharmaceuticals manufactured, marketed, and sold outside the US. The segment consists of brands

including Creon, Biaxin, Klacid, Klaricid, Influvac, Serc, Brufen, Synthroid, Duspata, Dicetel, Duphaston, Adomet,

Heptral, Transmetil, Samyr, Donamet, Duphalac, Lipanthyl, TriCor, Teveten, and Teveten Plus. Certain products are co-

marketed or co-promoted with other companies.

In July 2014, Abbott sold its branded generics pharmaceuticals business in the developed markets to Mylan. The

business includes a portfolio of approximately 100 specialty and branded generic pharmaceutical products in over 40

countries primarily in Europe, Japan, Canada, Australia and New Zealand. This transaction is expected to close in first

quarter of 2015.

The diagnostic products segment is engaged in manufacturing, marketing, and selling of diagnostic systems and tests.

These products are sold under various brands which include ARCHITECT, AxSym, Abbott Prism, m2000, Vysis, i-STAT

and Cell-Dyn.

The vascular products segment manufactures, markets, and sells a range of coronary, endovascular, vessel closure, and

structural heart devices for the treatment of vascular diseases. Its major brands include Xience Xpedition, Xience Prime,

Xience nano, Xience V, Multi-Link, TREK, Voyager, Elite, StarClose, Perclose, Acculink/Accunet, MitraClip, Absorb and

Xact/Emboshield.

Besides its four reportable business segments, Abbott also sell products, which fall under 'other business'. The

company's 'other business' includes blood glucose monitoring meters, test strips, data management software and

accessories for people with diabetes.



Key Metrics

The company recorded revenues of $21,848m in the fiscal year ending December 2013, an increase of 1.6% compared

to fiscal 2012. Its net income was $2,576m in fiscal 2013, compared to a net income of $5,963m in the preceding year.

Table 6: Abbott Laboratories: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 30,764.7 35,166.7 21,407.0 21,494.0 21,848.0

Net income (loss) 5,745.8 4,626.2 4,728.4 5,962.9 2,576.0

Total assets 52,581.6 60,573.9 60,276.9 67,234.9 42,953.0

Total liabilities 29,517.9 37,808.7 35,750.7 40,421.7 17,679.0

Employees 72,868 91,440 91,922 91,000 69,000

SOURCE: COMPANY FILINGS M A R K E T L I N E

Table 7: Abbott Laboratories: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 18.7% 13.2% 22.1% 27.7% 11.8%

Revenue growth 4.2% 14.3% (39.1%) 0.4% 1.6%

Asset growth 24.0% 15.2% (0.5%) 11.5% (36.1%)

Liabilities growth 18.5% 28.1% (5.4%) 13.1% (56.3%)

Debt/asset ratio 56.1% 62.4% 59.3% 60.1% 41.2%

Return on assets 12.1% 8.2% 7.8% 9.4% 4.7%

Revenue per employee $422,198 $384,588 $232,882 $236,198 $316,638

Profit per employee $78,852 $50,593 $51,440 $65,526 $37,333




Figure 11: Abbott Laboratories: revenues & profitability


Figure 12: Abbott Laboratories: assets & liabilities




Boston Scientific Corporation

Table 8: Boston Scientific Corporation: key facts

Head office: 300 Boston Scientific Way, Marlborough, Massachusetts 01752 1234, USA

Telephone: 1 800 876 9960

Fax: 1 508 683 4000

Website: www.bostonscientific.com


Ticker: BSX



Boston Scientific (or 'the company') is engaged in the development, manufacture and marketing of less-invasive medical

devices. It offers several products in the areas of cardiology, oncology, interventional radiology, pain management,

urology, women's health and neuromodulation. The company operates in the US, Europe, the Middle East, Africa and

Asia Pacific.

The company offers its products through seven business divisions: interventional cardiology, cardiac rhythm

management (CRM), endoscopy, peripheral interventions, urology/women's health, neuromodulation, and

electrophysiology.

Boston Scientific's interventional cardiology products are used to diagnose and treat coronary artery disease and other

cardiovascular disorders. The company's interventional cardiology products include coronary stent systems, coronary

revascularization products (to treat patients with atherosclerosis), and intraluminal catheter-directed ultrasound imaging

catheters and systems (for use in coronary arteries and heart chambers as well as certain peripheral vessels). The

company also offers structural heart therapy services under its interventional cardiology division.

The CRM division develops, manufactures and markets a variety of implantable devices including implantable

cardioverter defibrillator (ICD) systems and implantable pacemaker systems that monitor the heart and deliver electricity

to treat cardiac abnormalities.

The company's endoscopy business division offers a range of gastroenterology products to diagnose, treat and ease a

variety of digestive diseases, including those affecting the esophagus, stomach, liver, pancreas, duodenum, and colon.

The division also offers interventional bronchoscopy devices which are used to diagnose, treat and ease pulmonary

disease systems within the airway and lungs.

The peripheral product portfolio consists of stents, balloon catheters, sheaths, wires and vena cava filters. The company

also sells products designed to treat patients with non-vascular disease. The non-vascular products include biliary stents,

drainage catheters and micro-puncture sets designed to treat, diagnose and ease various forms of benign and malignant

tumors. In addition to these, the company offers embolic protection system, a low profile filter designed to capture

embolic material that may become dislodged during a procedure.

Boston Scientific's urology/women's health business division develops and manufactures devices to treat various

urological and gynecological disorders. The company offers a line of stone management products, including ureteral

stents, wires, lithotripsy devices, stone retrieval devices, sheaths, balloons and catheters. The company markets a range

of devices for the treatment of conditions such as female urinary incontinence, pelvic floor reconstruction and

menorrhagia. The company offers mid-urethral sling products, sling materials, graft materials, pelvic floor reconstruction

kits, and suturing devices.



Under the neuro-modulation business division, the company markets the precision spinal cord stimulation (SCS) system

for the management of chronic pain.

The company's electrophysiology business develops less-invasive medical technologies used in the diagnosis and

treatment of rate and rhythm disorders of the heart. Boston Scientific's electrophysiology products include radio

frequency generators, intra-cardiac ultrasound and steerable ablation catheters, and diagnostic catheters.

Key Metrics

The company recorded revenues of $7,143m in the fiscal year ending December 2013, a decrease of 1.5% compared to

fiscal 2012. Its net loss was $121m in fiscal 2013, compared to a net loss of $4,068m in the preceding year.

Table 9: Boston Scientific Corporation: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 8,188.0 7,806.0 7,622.0 7,249.0 7,143.0

Net income (loss) (1,025.0) (1,065.0) 441.0 (4,068.0) (121.0)

Total assets 25,177.0 22,128.0 21,290.0 17,154.0 16,571.0


Employees 26,000 26,000 24,000 24,000 23,000


Table 10: Boston Scientific Corporation: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin (12.5%) (13.6%) 5.8% (56.1%) (1.7%)

Revenue growth 1.7% (4.7%) (2.4%) (4.9%) (1.5%)

Asset growth (7.2%) (12.1%) (3.8%) (19.4%) (3.4%)

Liabilities growth (7.8%) (15.9%) (8.3%) 3.5% (2.5%)

Debt/asset ratio 51.1% 49.0% 46.7% 60.0% 60.5%

Return on assets (3.9%) (4.5%) 2.0% (21.2%) (0.7%)


Profit per employee ($39,423) ($40,962) $18,375 ($169,500) ($5,261)




Figure 13: Boston Scientific Corporation: revenues & profitability


Figure 14: Boston Scientific Corporation: assets & liabilities




Johnson & Johnson

Table 11: Johnson & Johnson: key facts

Head office: One Johnson & Johnson Plaza, New Brunswick, New Jersey 08933, USA

Telephone: 1 732 524 0400

Website: www.jnj.com


Ticker: JNJ



Johnson & Johnson (J&J or 'the company') is a global manufacturer of health care products as well as a provider of

related services. The company conducts its international business through more than 275 operating companies across

the globe. It has major operations in the Americas, Europe, Asia Pacific and Africa.

The company operates through three segments: medical devices and diagnostics, pharmaceuticals, and consumer.

J&J's medical devices and diagnostics segment manufactures and markets products used by physicians, nurses,

therapists, hospitals, diagnostic laboratories and clinics. These include products to treat cardiovascular diseases;

orthopedic and neurological products; blood glucose monitoring and insulin delivery products; general surgery,

biosurgical, and energy products; professional diagnostic products; infection prevention products; and disposable contact

lenses. The company's products are distributed to wholesalers, hospitals and retailers. In June 2014, J&J completed the

divestiture of its Ortho-Clinical Diagnostics business, a global provider of solutions for screening, diagnosing, monitoring

and confirming diseases, to The Carlyle Group for approximately $4bn.

The pharmaceutical segment produces and markets products in the following therapeutic areas: anti-infective,

antipsychotic, contraceptive, gastrointestinal, hematology, immunology, infectious diseases, metabolic, neurology,

oncology, pain management, thrombosis and vaccines. Key products in the pharmaceutical segment include: Remicade

(infliximab), for the symptoms of Crohn's disease, ankylosing spondylitis, psoriatic arthritis, ulcerative colitis, chronic

severe plaque psoriasis and rheumatoid arthritis; Stelara (ustekinumab), a treatment for adults with moderate to severe

plaque psoriasis; Simponi (golimumab), a treatment for adults with moderate to severe rheumatoid arthritis, active

psoriatic arthritis, and active ankylosing spondylitis; Velcade (bortezomib), a treatment for multiple myeloma; Zytiga

(abiraterone acetate), a treatment for metastatic castration-resistant prostate cancer; Prezista (darunavir), Intellence

(etravirine) and Edurant (rilpivirine), treatments for HIV/AIDS; Incivo (telaprevir), for the treatment of hepatitis C; Nucynta

ER (tapentadol) extended release tablets, a treatment for moderate to severe chronic pain in adults and neuropathic pain

associated with diabetic peripheral neuropathy in adults; Invega Sustenna (paliperidone palmitate), for the acute and

maintenance treatment of schizophrenia in adults; Invega (paliperidone) extended-release tablets, for the treatment of

schizophrenia and schizoaffective disorder; Risperdal Consta (risperidone), a treatment for the management of Bipolar I

Disorder and schizophrenia; Xarelto (rivaroxaban), an oral anticoagulant for the prevention of thrombosis following total

hip or knee replacement surgery, for the prevention of stroke in patients with atrial fibrillation, for the treatment of

pulmonary embolism (PE) or deep vein thrombosis (DVT) or to reduce the risk of recurrence of DVT or PE following an

initial six months of treatment for acute venous thromboembolism; Procrit (epoetin alfa, sold outside the US as Eprex), to

stimulate red blood cell production; Concerta (methylphenidate HCl) extended-release tablets CII, a treatment for

attention deficit hyperactivity disorder; and Aciphex EX /Pariet , a proton pump inhibitor co-marketed with Eisai. J&J's

products are distributed directly to retailers, wholesalers and health care professionals.



J&J's consumer segment develops, manufactures and markets products for baby care, skin care, oral care, wound care

and women's health care. It also offers nutritional and over-the-counter (OTC) pharmaceutical products. Its major brands

include: Aveeno (skin care products); Band-Aid (adhesive bandages); Carefree (panty liners); Clean & Clear (skin care

products for teens); Johnson's baby and adult lines of products; Motrin IB (ibuprofen products); Neutrogena (skin and

hair care products); RoC (skin care products); Pepcid AC (acid controller); Listerine and Reach (oral care products);

Dabao (moisturizers); Zyrtec (allergy products); Splenda (sweetener); Stayfree (sanitary protection products); and

Tylenol (acetaminophen products). The company sells its products to wholesalers and directly to independent and chain

retail outlets throughout the world.

Key Metrics

The company recorded revenues of $71,312m in the fiscal year ending December 2013, an increase of 6.1% compared

to fiscal 2012. Its net income was $13,831m in fiscal 2013, compared to a net income of $10,510m in the preceding year.

Table 12: Johnson & Johnson: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 61,897.0 61,587.0 65,030.0 67,200.0 71,312.0

Net income (loss) 12,266.0 13,334.0 9,672.0 10,510.3 13,831.0

Total assets 94,682.0 102,908.0 113,644.0 121,347.0 132,683.0


Employees 115,500 114,000 117,000 127,600 128,100


Table 13: Johnson & Johnson: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 19.8% 21.7% 14.9% 15.6% 19.4%

Revenue growth (2.9%) (0.5%) 5.6% 3.3% 6.1%

Asset growth 11.5% 8.7% 10.4% 6.8% 9.3%

Liabilities growth 4.0% 5.1% 22.1% (0.1%) 3.7%

Debt/asset ratio 46.6% 45.0% 49.8% 46.6% 44.2%

Return on assets 13.7% 13.5% 8.9% 8.9% 10.9%






Figure 15: Johnson & Johnson: revenues & profitability


Figure 16: Johnson & Johnson: assets & liabilities




Medtronic, Inc.

Table 14: Medtronic, Inc.: key facts

Head office: 710 Medtronic Parkway, Minneapolis, Minnesota 55432 5604, USA

Telephone: 1 763 514 4000

Website: www.medtronic .com

Financial year-end: April

Ticker: MDT



Medtronic (or 'the company') is a diversified medical device company. It develops and markets products and therapies in

the areas of cardiac rhythm disorders, cardiovascular diseases, neurological disorders, spinal conditions and

musculoskeletal trauma, urological and digestive disorders, diabetes, and ear, nose and throat conditions. Medtronic

serves physicians, clinicians and patients in more than 140 countries.

The company operates through two segments that manufacture and sell device-based medical therapies: cardiac and

vascular group; and restorative therapies group.

The cardiac and vascular group is comprised of following businesses: cardiac rhythm disease management (CRDM),

coronary, endovascular therapies, and structural heart.

Medtronic's CRDM business develops, manufactures, and markets products for the diagnosis, treatment, and

management of heart rhythm disorders and heart failure. The company provides CRDM products such as implantable

devices, leads and delivery systems, products for the treatment of atrial fibrillation (AF), and information systems for the

management of patients with CRDM devices.

The coronary business is comprised of the company's therapies to treat coronary artery disease (CAD) and

hypertension. Products contained within this business include coronary stents and related delivery systems, along with a

line of balloon angioplasty catheters, guide catheters, guidewires, diagnostic catheters and accessories.

The endovascular and peripheral business consists of a line of products and therapies to treat abdominal and thoracic

aortic aneurysms and peripheral vascular disease (PVD). Products include endovascular stent graft systems, embolic

protection systems, and stent systems for the treatment of narrowed iliac arteries.

The structural heart business offers a line of products and therapies to treat heart valve disorders, including products for

the repair and replacement of heart valves, perfusion systems, positioning and stabilization systems for beating heart

revascularization surgery, and surgical ablation products.

The restorative therapies group segment consists of four businesses: spinal, neuromodulation, diabetes and surgical

technologies.

The spinal business develops, manufactures, and markets a line of medical devices and implants used in the treatment

of the spine and the musculoskeletal system. Its products and therapies treat a variety of conditions affecting the spine,

including degenerative disc disease, spinal deformity, spinal tumors, fractures of the spine, and stenosis. The spinal

business also provides biologic solutions for the dental and orthopedic markets.

The neuromodulation business develops, manufactures, and markets medical devices for the treatment of chronic pain,

common movement disorders, spasticity, and urologic and gastrointestinal disorders. Products under this business

include neurostimulation systems for chronic pain; implantable drug delivery systems for pain management; and deep

brain stimulation systems for movement disorders. It also offers urology, and gastroenterology devices.



Medtronic's diabetes business develops, manufactures and markets advanced, integrated diabetes management

solutions that include insulin pump therapy systems, continuous glucose monitoring (CGM) systems, and therapy

management software.

The surgical technologies business develops, manufactures and markets products and therapies to treat diseases and

conditions of the ear, nose and throat (ENT), and certain neurological disorders. In addition, the business provides

image-guided surgery and intra-operative imaging systems that facilitate surgical planning during precision cranial,

spinal, sinus, and orthopedic surgeries.

Key Metrics

The company recorded revenues of $16,590m in the fiscal year ending April 2013, an increase of 2.5% compared to

fiscal 2012. Its net income was $3,467m in fiscal 2013, compared to a net income of $3,617m in the preceding year.

Table 15: Medtronic, Inc.: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 14,599.0 15,392.0 15,508.0 16,184.0 16,590.0

Net income (loss) 2,169.0 3,099.0 3,096.0 3,617.0 3,467.0

Total assets 23,661.0 28,090.0 30,675.0 33,083.0 34,794.0


Employees 38,000 43,000 45,000 45,000 46,000


Table 16: Medtronic, Inc.: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 14.9% 20.1% 20.0% 22.3% 20.9%

Revenue growth 8.0% 5.4% 0.8% 4.4% 2.5%

Asset growth 6.6% 18.7% 9.2% 7.9% 5.2%

Liabilities growth 1.4% 24.5% 9.3% 8.6% 1.0%

Debt/asset ratio 45.7% 47.9% 47.9% 48.3% 46.3%

Return on assets 9.5% 12.0% 10.5% 11.3% 10.2%






Figure 17: Medtronic, Inc.: revenues & profitability


Figure 18: Medtronic, Inc.: assets & liabilities




MACROECONOMIC INDICATORS

Country Data

Table 17: United States size of population (million), 2009–13

Year Population (million) % Growth

2009 306.8 0.9%

2010 309.3 0.8%

2011 311.6 0.7%

2012 313.9 0.7%

2013 316.4 0.8%


Table 18: United States gdp (constant 2005 prices, $ billion), 2009–13

Year Constant 2005 Prices, $ billion % Growth

2009 13,263.1 (2.8%)

2010 13,595.6 2.5%

2011 13,846.8 1.8%

2012 14,231.7 2.8%

2013 14,501.3 1.9%


Table 19: United States gdp (current prices, $ billion), 2009–13

Year Current Prices, $ billion % Growth

2009 14,417.9 (2.1%)

2010 14,958.3 3.7%

2011 15,533.8 3.8%

2012 16,244.6 4.6%

2013 16,802.4 3.4%




Table 20: United States inflation, 2009–13

Year Inflation Rate (%)

2009 (0.3%)

2010 1.6%

2011 3.2%

2012 2.1%

2013 1.4%


Table 21: United States consumer price index (absolute), 2009–13

Year Consumer Price Index (2005 = 100)

2009 109.8

2010 111.7

2011 115.2

2012 117.6

2013 119.2


Table 22: United States exchange rate, 2009–13

Year Exchange rate (€/$)

2009 1.3905

2010 1.3279

2011 1.3912

2012 1.2856

2013 1.3281




APPENDIX

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then be refined according to specific competitive, regulatory and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date



Industry associations

Consumer Healthcare Products Association

900 19th Street, NW, Suite 700, Washington, DC 20006, USA

Tel.: 1 202 429 9260

Fax: 1 202 223 6835

www.chpa-info.org

Related MarketLine research

Industry Profile

Global Health Care Equipment & Supplies

Health Care Equipment & Supplies in Asia-Pacific

Health Care Equipment & Supplies in Europe

Health Care Equipment & Supplies in Canada

Health Care Equipment & Supplies in China

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Cybrary on 7/30/2015. MarketLine. (2014). Health care ... analysis The US health care equipment & supplies market has seen moderate growth in recent years but increased growth is projected