Increase in Elderly Population Drives IVD Market

As Taiwan's elderly population increases the in vitro diagnostics (IVD) market is expected to grow at a stable compound annual growth rate of 6.1 per cent from 2010 to 2017.

In a new analysis, the growth partnership company Frost & Sullivan (New York, NY, USA) found that the market earned revenues of US$252.0 million in 2010 and expects this to reach $381.0 million in 2017.

End users' growing willingness to use advanced tests and products will drive manufacturers to introduce constantly novel tests. Biotech participants will also be sustained by the continuous Government support to standardize medical device and initiatives to develop the country into a healthcare hub. For example, the Government implemented the “The Taiwan Diamond Plan for Biotechnology Development” to encourage R&D, accumulate biotechnology venture capital (BVC), and aid start-up enterprises.

However, the lack of clarity on reimbursement coverage for molecular tests could impede the market's growth. In addition, intellectual property (IP) issues and legal issues deter foreign companies from setting up their R&D centers in Taiwan. The success of local companies also depends on insurance coverage.

"The Government intends to spend [Taiwan new dollar] TWD 1.27 billion during 2009-2014 in the biotechnology industry to encourage the growth of the social BVC from TWD 891 million in 2009 to TWD 1.78 billion in 2014," said Frost & Sullivan industry analyst Mr. Arun A.K. "Through this plan, it hopes to increase the value of the biotechnology industry from TWD 4.29 billion in 2009 to TWD 8.58 billion in 2014."

"Strategic collaborations between local and international companies to develop cost-effective tests and innovative products offset their challenges to a great extent," noted Mr. Arun. "The establishment of the Taiwan Food and Drug Administration (TFDA) to regulate standards will help local companies launch their products efficiently in the country."

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