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Analysis Shifts in APAC healthcare

The Asia-Pacific (APAC) healthcare industry is undergoing rapid transformation with a dramatic shift in consumer behaviour and expectations, opening up growth opportunities across diagnostics, regenerative medicine, medical tourism and digital health.

The positive growth is fuelled by increasing adoption of new technology, innovative healthcare access programs, and delivery of care outside traditional hospital settings. Frost & Sullivan projects a revenue growth of over 12% in 2018, making APAC one of the fastest growing regions for the healthcare industry in the world.

Frost & Sullivan’s recent analysis, Asia-Pacific Healthcare Outlook, looks at a number of predictions for the APAC healthcare industry.

“Through digital transformation healthcare companies are introducing service-orientated business models, and direct-to-consumer care delivery platforms in the region,” said Natasha Gulati, industry manager, transformational health, Frost & Sullivan. 

“Meanwhile new approaches to health and wellness, like “omics” based health advisory and gamification are gaining market momentum,” she added. 
Gulati recommends players focus on personalisation, combined with consumer empowerment, as a key ingredient for disease prevention and patient wellness. Innovative companies active in this space include Prudential, iCarbonX, and Healthi which are moving toward personalised wellness intervention through the introduction of direct-to-consumer gene sequencing, and Thorne Research and Imagene Labs which are about to make available personalised over-the counter nutritional supplements and skin care products on a subscription model. 

Six key trends spurring growth opportunities in the APAC healthcare industry include: the rise of new payment models, especially those tied to value-based outcomes; fast-tracked innovative therapeutic products, development and penetration of regenerative medicine, biosimilars, and genetics; technology innovation with rapid development in areas like Artificial Intelligence, mHealth, and virtual reality; the development of personalisation combined with consumer empowerment for prevention and wellness; the adoption of wireless real-time monitoring, aided by analytics, as the clinical community aims for further efficiency and outcome-based approaches; and the rapid deployment of cloud solutions to increase IT efficiency in non-clinical departments.

 “An important global trend that is currently missing in APAC is the introduction of value-and outcomes-based payment and reimbursement models. Industry suppliers, including IT vendors, medical technology companies and pharmaceuticals, are partnering with public and private payers to introduce outcomes-based reimbursement models for expensive therapeutic products and services in other parts of the world,” noted Gulati.

Posted on: 14/05/2018 UTC+08:00


News

SGX-listed Acromec, which designs and builds medical and sterile cleanrooms, has secured another contract in the healthcare sector valued at S$2.9 million (US$2.1 million). It is expected to be completed by the end of the year.
Sydney-based 1st Group, the Australian digital health, media and technology group, has appointed Richard Rogers as chief financial officer. He joins from Lenovo Australia & New Zealand.
Asia-focused market expansion services provider DKSH is to sell its healthcare business in China to Warburg Pincus for SFr100 million (US$100.7 million).
Summerset Group, New Zealand’s third-largest listed retirement village operator, has said that it expects underlying half year profits to jump between 21% and 26% to NZ$43 million (US$29.4 million) and NZ$45 million.
Patient flow management firm Jayex Healthcare has signed a binding licence agreement with medical cannabis company MediCann NZ under which it will be granted the exclusive use and application of its technologies in New Zealand in connection with their proposed sale and distribution of medical cannabis products in line with the expected deregulation in New Zealand of medical cannabis.
IDS Medical Systems Group, a leading medical supply-chain solutions company in Asia, and Tencent-backed We Doctor have formed idsMED WeDoctor China, the country’s first smart medical supply chain solutions and procurement company.
Australian medtech company Resonance Health has signed an alliance partner agreement with Blackford Analysis which grants it rights to integrate and combine Resonance Health products with, or sell and license Resonance Health products in connection with the host application.
Malaysian medical services company Adventa has scrapped plans to raise M$80.2 million (US$20.3 million) after Top Glove Corporation, the world’s largest rubber glove manufacturer, announced legal proceedings against its parent Adventa Capital and two of its directors.



Analysis

Ping An Healthcare and Technology, formerly known as Good Doctor, has signed contracts with nearly 200 large corporations, including Vanke, Greentown, Bank of China, China Telecom, China National Nuclear Power, Evergrande Group and provides services to nearly 1.5 million employees, covering 27 provinces, autonomous regions and municipalities.
Earlier this week, Cigna Corporation released the results of its 2018 Cigna 360° Well-Being Survey – Future Assured. The findings, which were tracked over a four year period, show rising awareness of the need to prepare for old age, which includes being continually active and financially independent. As a result, people are working harder today, and increasingly calling on employers to help in managing workplace stress.
Auckland-based ehealth software company Orion Health is to sell off two significant parts of its business to private equity technology investor Hg for NZ$225 million (US$150.7 million). The sale could revitalise a company that has struggled recently.
Aon’s inaugural Asia Healthcare Trends Report 2017/18 shows that although Hong Kong has a lower medical inflation rate than the average in APAC, it is the highest in Greater China.
Out of date and unsecure fax machines are still being used to share patient information between healthcare providers in Australia. Not only do fax machines cause frustration for healthcare providers trying to communicate with each other, they can also cause patient harm.
Health and well-being programmes are fragmented and do not meet the needs of stressed Asia workforces, finds Willis Towers Watson. By and large, employers in Asia still miss the mark when it comes to their health and well-being benefits, with many employees feeling that their needs are not met, according to research from the global advisory, broking and solutions company.
According to a survey of biopharma companies by L.E.K. Consulting, the majority of firms from Western Europe or the US are interested in China, specifically those at Phase 2 or later development.
Sara Jost, global healthcare industry lead at BlackBerry, explains that putting the systems and procedures in place to deliver a healthy and secure digital healthcare system will protect patient health information and support medical innovation.
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