Drug makers, research labs, equipment manufacturers, and healthcare technology companies have been the active acquirers, whereas hospitals, insurers, and pharmacologic companies have a limited number of acquisitions. With healthcare industry being least affected by the economic downturn, there is adequate funding available for healthcare deals, resulting in an increase in the number of takeovers.
New analysis from Frost & Sullivan (Palo Alto, CA, USA), an international growth consultancy company, found that the market earned revenues US$5,650 million in 2009. Tier I companies are frequently the major global participants with high revenues and a wide range of product offerings across all segments of medical imaging. Tier II companies have a notable presence in the medical imaging market in terms of revenues, and their product range covers most segments of the medical imaging market. Lastly, tier III companies have relatively lesser product offerings and they are focused on selected segments of the medical imaging market.
"The economic slump, availability of low-priced acquisitions, and ready-financing for the healthcare industry have increased the viability of tier I companies to expand market share through acquisitions,” stated Frost & Sullivan research analyst Beulah Devadason. "Acquisition focus has mainly been in emerging markets such as the Brazil, Russia, India, and China [BRIC] and is likely to continue going forward.”
However, market expansion trends through acquisitions and strategic alliances indicate the entry of Japanese manufacturers in the United States and European markets, whereas US companies have expanded their market share by acquiring smaller American companies. "Market expansion, technological developments, and competitive pricing will play an important role in the survival of non-tier I companies, as tier I companies continue to enhance their position in all three criteria through strategic acquisitions,” explained Ms. Beulah.
The development of innovative technology and formation of strategic partnerships or alliances with influential market participants are the keys to success for most tier II and tier III companies in the medical imaging market.
"Tier III companies will witness significant consolidation activity in the medical imaging market,” concluded Ms. Beulah. "Since the market is dominated by the tier I companies, tier III companies will be acquired for their technological developments and distribution channels, further increasing the domination of the tier I companies.”
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