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Medical Technologies Distributor Profiles in Eastern Europe

  • September 2014
  • -
  • Frost & Sullivan
  • -
  • 107 pages

Summary

Table of Contents

Assessment for Growth Opportunities Using Distributors in Eastern Europe

The Eastern European medical device industry is in the growth stage. Both established medical-device providers as well as new medical-device manufacturers are constantly trying to penetrate the Eastern European region, while simultaneously looking at ways to reduce the cost incurred for placing their products in this sector. Using distributors is one of the effective means to achieve this target. This research service analyses the medical devices distribution market in Eastern European and provides profiles of key distributors in Bulgaria, the Czech Republic, Hungary, Poland, and Romania. It also supplies the drivers, restraints, and future trends in the medical device distribution market.

Executive Summary—Key Findings
-The Eastern European medical device industry accounts for approximately $ billion in 2013. It is expected to grow by a compound average growth rate of% between 2014 and 2018.
-The medical device industry in Eastern Europe is very diverse and is at different stages of development. Most healthcare systems present in this region are in need of renovation or replacement.
-New hospital equipment is mostly imported, as many medical device manufacturers within the region are unable to fulfil the demand for more sophisticated equipment. Poland, the Czech Republic, and Hungary represent the largest medical markets in the region.
-The medical technology and distribution sector in Eastern Europe is highly competitive and fragmented.
-Increasing competition among medical device manufacturers, changing governmental regulations and policies, and variations in customer outlook and demand are fuelling the need for distributors in Eastern European countries.
Note: Medical devices include products, solutions, and equipment from surgical, imaging, consumables, dental, and patient-aid sectors.
-The emergence of private healthcare facilities in response to greater demand for healthcare services, which the public hospitals have been unable to meet, especially in countries such as Bulgaria, Romania, and Poland, has helped distributors to increase revenue.
-Many of the Eastern European distributors take an active part in provincial pricing, reimbursement listing, and bidding hospital tender.
-Distributors have good business relationships with key decision-makers in many hospitals; such contacts can help them secure a supply contract in these hospitals. Doctors and nurses play an important role in brand choice.
-Simple distributors are the main distributors, followed by importers and wholesalers in Eastern European countries. There is also a rise in the number of fourth-party logistics (4PL) companies catering to multinational manufacturers looking to increase market penetration in Eastern Europe.
-Provincial distributors prefer to collaborate with large manufacturers and become their exclusive distributors. They then use these existing relationships as leverage with key decision-makers in the healthcare industry.

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