The European Contrast Media Market, 2002 Interactive Analyst Briefing Sumit Sharma London, UK 27 th Sept, 2002

Agenda Objective of the report & briefing Definitions & Overview Market Situation Analysis Future Market Trends Analysis Competitive Environment Challenges Facing the Market Players Strategy Formulation Conclusions

Value-added feature of this report Procedural data of all modalities under study Demand estimation Overview of growth segments for possible NPD Objective and Value of the Report To enable guidance for future marketing and strategic decisions by imparting thorough knowledge and analysis of the existing and future European contrast media market in terms of demand, market age, strategic implications, competition, revenues and other market dynamics.

Objectives of the Briefing Offer in-depth assessment of the European contrast media market Identify key issues that affect general marketing environment Discuss future strategies that could be applicable for consolidation Exchange ideas, opinions and views of the market for the present and the future

Definitions and Overview Definition –Radio-opaque substances used to provide a contrast in density between the tissue or organ being filmed and the medium Use –Helps easier visibility of soft tissues in various imaging procedures Disadvantages –Side-effects like skin reactions, nephrotoxicity, etc. Market Definition –Total revenue comprising of contrasting agents used in all the imaging procedures within the modalities under study across Europe

Definitions and Overview… Market Segmentation –Based on modalities where contrasting agents are used for imaging X-ray / CT: Conventional X-ray, Angiography, CT MRI Ultrasound Not included are air contrast agents - radiopharmaceuticals

Market Situation Analysis Major Driving Factors Faster imaging techniques increasing consumption Increasing installed base of certain modern imaging equipments (MRI)increasing the number of imaging procedures Favourable population structure Major Restraining Factors New Imaging techniques decreasing the use of contrast media Price controls and price competition leading to constant price erosion Older equipments retarding growth rate due to inefficiency Market saturation of conventional X-ray segment Financial constraints in a few markets leading to price sensitivity

Market Situation Analysis... Key Market Trends –Demand highest in CT and MRI segments in terms of number of procedures and usage (included in the report) –Increasing focus on innovation within the MRI segment –Growing need for tissue and organ specific contrasting agents –Increasing demand for low-dosage, long life contrast media Market Revenues – Over US$800 million with growth rate less than 5% per annum –Germany is the highest revenue contributor

Market Situation Analysis... Market Revenues (Europe),

Market Situation Analysis... Percent Revenues by Product Type (Europe),

Market Situation Analysis... Percent of Revenues by Geographic Regions (Europe), 2001

Future Market Trends Analysis CT likely to lose market share due to new technologies MRI segment likely to gain the maximum due to increasing reliability on the modality X-ray market will saturate by 2005 Reimbursement issues will drive efficiency Demand for injectors and syringes expected to increase significantly Growing interdependence of the medical imaging and the contrast media industries for NPD

Competitive Environment Key competitive factors –Pricing –Product differentiation & innovation –Time to market and first mover advantage –Quality: minimum side-effects –R&D expertise

Strategy Formulation Strategy MarketingSales Functional Level Corporate Level R&DManagement

Conclusions Major growth potential in the MRI segment New products likely to be soon in the marketplace Closer relationship of the market players and OEM manufacturers likely to be seen Future growth Strategy likely to be consisting of –Increased focus on the MRI segment –Strategic alliances and M&As –Customer focussed differentiation approach (packaging, etc.) –Cost-effectiveness approach –Development of niche markets

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