International Markets – Jan 2018

International Markets

Australia

  • Prime Minister Malcolm Turnbull and Federal Health Minister Greg Hunt announced a USD 110 million funding for mental health support networks and programs, including school support programs and new headspace centers in Australia. (Network Ten Pty Limited)
  • Australian Council Of Learned Academics (ACOLA) and Health Minister Greg Hunt release the report "The future of precision medicine in Australia“. Key highlights of the reports are:
    • The main focus of precision medication to date has been on single-gene disorders and cancer. Report emphasizes on exciting opportunities to improve outcomes for complex disorders such as cardiovascular disease and diabetes
    • Precision medication could lead to genetic discrimination so careful implementation would require to offer great value for the health of all Australians. (Xinhuanet)
  • As per KPMG, China’s investment in Australian Healthcare has surpassed USD 4.4 billion in the past three years
    • The investments mainly focused on health supplement and medical treatment sectors with no significant investment in aged care, biotechnology or pharmaceuticals.
    • USD 2.06 billion was invested in 2015 followed by USD 1.09 billion in 2016 and USD 1.27 billion in 2017 across 16 deals. (Xinhuanet)

China

  • The State Intellectual Property Office of China issues the directory of key industries supported by Intellectual Property (2018) and identifies 10 key industries in which support of intellectual property was urgently needed. China will prioritize the development of those industries and the health industry is one of them.
    • The health industry covers 24 programs in 5 sectors including Major New Drug Development, Major Disease Prevention and Control & Precision Medicine, High-end Medical Equipment, Modernization of Traditional Chinese Medicine and Smart Healthcare. (CN-Healthcare)
  • China included health as a major priority in its national development agenda. The president Xi Jinping, confirms the importance of health by saying that health is “a prerequisite for people’s all round development and a precondition for economic and social development.”

    As per BMJ (a medical research journal) China is rapidly progressing its medical research:

    • China has 32 national centres of clinical research, focusing on 11 disease areas, and this will grow to 100 centres by 2021
    • Globally, China ranks ninth for clinical research capability according to an evaluation based on number and phase of interventional clinical trials and number of papers published in leading clinical research journals between 2014 and 2016 (BMJ)
  • Insurers adapting to ageing Hong Kong and China with policies that cover longer lives:
    • A senior executive at reinsurer Swiss Re states that ageing populations in Hong Kong and mainland China are leading the insurance industry to extend the age range of life products and to include cover for more diseases and for mental illness.
    • Robert Burr, the managing director and head of life and health reinsurance client markets in Asia, says that statistics showed 25% of people born today would be able to live to over 100 with the help of better medical services and technology to address different types of diseases, and more medical policies would cover mental illnesses.
    • Patrick Graham, chief executive for the Asia-Pacific region at Cigna, states with people living longer, companies would need to understand that there would be an increasing need for health and pension benefits. (SCMP)
  • China witnesses a high demand for UK’s healthcare education and training. To meet the high demand, Healthcare UK prepared a mission to bring UK healthcare exporters to China. The mission was supported by British Embassy in Beijing, British Consulate in Guangzhou and China-Britain Business Council (CBBC). (Gov.UK)

The U.K

  • The new Cancer Drugs Fund (CDF) is benefitting thousand of patients by providing speedy access to the new and innovative treatments. CDF is expected to release at least £140 million into the NHS over the next five years.
    • Almost 15,700 patients have benefited from the 52 drugs treating 81 different types of cancer from CDF. Out of these patients, around 5,000 have received treatment sooner than they would have under the previous system. (NHS)
  • The UK healthcare services market is expected to cross USD 235 billion in 2019 due to Increasing government funding to deal with rising prevalence of chronic diseases such as diabetes, cancer and ageing population. Healthcare services deal with medical and remedial care service. (Med Gadget)
  • A delegation of 13 top British healthcare providers, suppliers, and other field experts are attending a trade mission in India between February 4-8. The delegation leader, Sir Malcolm Grant (Chairman of NHS England) states:
    • The mission will focus on innovation in healthcare, and address the changing needs of medical provision as disruptive technologies such as artificial intelligence, wearable sensors, and virtual reality become increasingly commonplace.
    • The delegates will demonstrate to Indian healthcare leaders how they can help meet key concerns around driving efficiencies in costs, increasing patient access in remote areas, and providing more personalized healthcare solutions through new technology. (Economic Times)

Japan

  • Generic drugs are taking hold in the Asian marketplace. Dr. Frederick Ch’en, an IP partner in Hogan Lovells highlights the following with respect to this segment in Japan :
    • Healthcare costs in the region have been spiraling, and the Japanese government has been encouraging the use of generic drugs with increased vigor over the past few years. That has created new incentive for generic companies to invest in Japan.
    • To encourage adoption of more generic products, the government has set a target that by the autumn of 2020, 80% of non-patented pharmaceutical products (ex - the generic share of the market replaceable by generics) should be generic from around 56% currently.
    • One of the big trends is observed that a lot of Japanese companies and, to a greater extent, international pharmaceutical companies and their Japanese subsidiaries are having their patents challenged. The industry is witnessing a huge spike in the number of preliminary injunctions and active litigation, especially in the life sciences sector. (STAT News)
  • Japanese hospital is planning to deploy Robotic helpers to reduce the workload of human healthcare professionals.
    • Nagoya University Hospital, based in Nagoya, Tsurumaicho, is planning to deploy a team of robots taking to the floor to deliver drugs and test samples. (Zdnet)

Technology Briefs

Frost & Sullivan

  • Global Cloud-based Medical Imaging Informatics market is expected to reach USD 830.5 million in 2021 from USD 285.4 million in 2016, at a CAGR of 23.8%.
    • Cloud-based platforms, installed through various software-as-a-service (SaaS), subscription or hybrid cloud models, open up new market access for imaging application developers, expand the prospective user base, and break down many adoption barriers for imaging providers. However the shift does pose challenges for vendors and customers, as shifting imaging informatics from capital-intensive to operational expenditure (OpEx), and from on-premises to hosted models, dramatically alters operational, security and financial risk profiles.
    • Over the next few years, the cloud’s synergistic convergence with advanced imaging analytics, machine learning, imaging research, interoperability standards and healthcare blockchains, will open new applications and opportunities for adoption by a wide range of stakeholders across the medical imaging value chain. (Frost & Sullivan)
  • In 2018, the APAC healthcare market is expected to reach USD 517 billion with a quite higher rate 11.1% as compared to the global healthcare economy, which averages merely 4.8% annual growth rate. Increasing adoption of technology, innovative healthcare access programs and delivery of care outside traditional hospital settings will act as key drivers to this market in APAC. (Frost & Sullivan)
  • Global Pharmaceutical Drug Discovery IT Solutions market is expected to reach USD 5.3 billion by 2020 at a CAGR of 8.9% due to rise in the usage of big data analytics and AI based solutions. Few key trends observed are:
    • Growth in IT spend in the short term supported by pharmaceutical companies shifting toward cloud-based analytics and automation solutions.
    • Automation and machine learning-based tools becoming a major investment focus for IT adoption in drug discovery, while digital data management, patient recruitment and remote-monitoring tools focus on the clinical trials segment.
    • Mobile and social media applications becoming a popular medium for pharma companies to engage with patients and physicians for clinical trials, product marketing and sales.
    • Segments such as real-world data, population health management, and clinical decision support witnessing the highest growth in the next three to four years. (Frost & Sullivan)

Others

  • A report published in Reform.org (an independent, non-party think tank) as “Thinking on its own: AI in the NHS” highlights the areas AI could support the delivery of the NHS’s Five Year Forward View, which aims to narrow three gaps in health provision:
    • AI could help address the health and wellbeing gap by predicting which individuals or groups of individuals are at risk of illness and allow the NHS to target treatment more effectively towards them.
    • The reduction of the care and quality gap could be supported by using AI tools to give all health professionals and patients access to cutting edge diagnostics and treatment tailored to individual need.
    • AI could help address the efficiency and funding gap by automating tasks, triaging patients to the most appropriate services and allowing them to selfcare.

    Few of the recommendations the report highlights are:

    • NHS Digital and the 44 Sustainability and Transformation Partnerships should consider producing reviews outlining how AI could be appropriately and gradually integrated to deliver service transformation and better outcomes for patients at a local level.
    • The NHS should pursue its efforts to fully digitize its data and ensure that moving forward all data is generated in machine-readable format.
    • NHS Digital should make submissions to the Data Quality Maturity Index mandatory, to have a better monitoring of data quality across the healthcare system. (Reform; Science Business)
  • Global Internet of Things (IoT) Healthcare market accounted for USD 40.6 billion in 2016 growing at a CAGR of 35.2% during the forecast period of 2017 to 2024. Key market drivers are:
    • Increased demand for augmented reality in e-commerce and retail stores
    • Growing demand for augmented reality software in consumer electronics
    • Increasing demand for AR-based applications in medical sectors (Digital Journal)
  • The Global Big Data Analytics in healthcare market is expected to cross USD 45 billion by 2026. Few key trends:
    • Asia-Pacific excluding Japan (APEJ) is anticipated to remain the fast-expanding as well as the most remunerative market for big data analytics in healthcare.
    • CRM analytics is expected to remain preferred among tools for big data analytics in healthcare, followed by financial analytics and production reporting. Sales of visual analytics will exhibit the fastest expansion through 2026, based on tool type.
    • Access operational information is anticipated to remain the largest application of big data analytics in healthcare, in terms of revenues. (Globe News Wire)
  • The United Kingdom’s National Cyber Security Centre (“NCSC”) announces guidance industries could be fined up to USD 24 million (£17 million) for not having effective cybersecurity measures in place. The penalties apply to critical infrastructure sectors including energy, transportation, water and healthcare. While the U.K. government stated that these penalties will be “a last resort,” the government will employ “sector-specific regulators” to monitor cybersecurity compliance across these critical infrastructure disciplines. (Crowell Data Law)
  • Chinese consumers keep high expectations from the application of AI in smart homes, healthcare, automobile and transportation, security and fitness, even though the current utilization rate of such devices is relatively low.
    • About 64.7% of consumers in China own digital voice-enabled assistants, but less than 20 percent of them use these assistants frequently.
    • More than 40% of Chinese consumers possess wearable devices and 30.8% use them every day, while 52.3% utilize them occasionally.
    • About 55% of consumers expect AI technologies to be applied in smart home systems, followed by healthcare, automobile, security and fitness. (China Daily)

Competitor Activities

  • NHS deploys Microsoft threat detection service on (ETDS) to merely 2% of the total 1.5 million devices within healthcare across hospital trusts and GP practices. The reason for such low deployment is not revealed. The ETDS element was included in a custom support agreement that covers all NHS orgs in the UK under a framework penned in August following the WannaCry attack in May last year. (The Register)
  • Syapse enters the Asian market through a partnership with Seoul National University Hospital and also signs a parallel deal with cloud IT company Megazone (a major Amazon Web Services consulting partner in Asia), that will allow the company to reach other potential customers in South Korea, Japan, and Vietnam. Seoul National University Cancer Hospital will install the Syapse data-aggregation platform in its 28 centers across Korea and Megazone will provide IT support. (Genome Web)
  • Foundation Medicine and the European Organisation for Research and Treatment of Cancer (EORTC) enters into a collaboration in which Foundation Medicine's comprehensive genomic profiling (CGP) tests will be used to inform patient eligibility for oncology clinical trials through the EORTC's Screening Patients for Efficient Clinical Trial Access (SPECTA) program. SPECTA is a pan-European network built by the EORTC with key institutions collaborating to provide efficient access for patients to molecularly driven clinical trials. (Foundation Medicine)
  • Clover Biopharmaceuticals (Chinese developer of biologics) selects GE Healthcare’s FlexFactory single-use biomanufacturing platform, for its new facility located in Changxing, Zhejiang. The new facility will primarily produce biological fusion protein products, including innovative drugs and biosimilars. The facility includes two 2000-liter bioreactors from GE, and will be operational in the latter half of 2018. (Geneng News)