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Growing Incidence of Acute Renal Failure Fuels Growth in the European Renal Therapy Market

Posted on: Tuesday, 18 October 2005, 06:00 CDT

LONDON, October 18 /PRNewswire/ -- With diabetes being the leading cause of ESRD, the constant increase in the European diabetic population is ensuring the growth of the European renal replacement therapy market. Up to 40.0 per cent of new cases of ESRD are a direct result of diabetes and patients with type 1 diabetes are 12 times more likely to develop this condition when compared to those with type 2. Further, of those suffering from type 1 diabetes, 20.0 per cent are at a risk of suffering from complete kidney failure, and a significant 50.0 per cent are expected to develop early signs of diabetic nephropathy or kidney disease.

While these figures indicate an increase in patients suffering from renal conditions, improvements in patient awareness levels has meant that patients are opting for better quality products and even options such as dialysing on a daily basis.

"As consumers are beginning to expect more technological advances at equivalent or even lesser prices, companies should invest in end user analysis and interact with dialysis specialists to acquire an understanding for the possible deliverables expected from their customers," notes Frost & Sullivan (http://healthcare.frost.com/) Research Analyst Claire Staniforth. "Further, research and development (R&D) efforts should be aimed at improving treatment quality at a minimum increase in costs."

Among the key challenges for participants in the European renal replacement therapy market is the high customer buyer power that is leading to a steep fall in prices. Across many European countries, purchasing decisions are not necessarily made at hospitals. Instead, purchasing groups or consortiums are formed to ensure a greater leverage in negotiating with replacement therapy companies and suppliers.

Also, restricted healthcare budgets and complicated reimbursement procedures pose significant threats to the growth of the European renal replacement therapy market. With the introduction of disease related groups (DRGs) in many European countries, reimbursement is now dictated by the nature of the disease rather than by the type of therapy chosen. This is preventing many healthcare providers from recommending certain renal replacement therapies, as the cost would be more than the amount reimbursed.

While prices have bottomed out giving little scope for any further decrease, in addressing the static price levels, companies need to offer additional service offerings such as guaranteed 'up-time' for dialysis machines, longer length warrantees and increased levels of customer service support.

Within Europe, there are a larger number of patients with acute renal failure (ARF), and this number is growing at a rate higher than that of end stage renal disease, (ESRD) patients. In 2004 the number of ARF patients receiving renal replacement therapy was 124,000 and contributed to revenues of $132.5 million. This figure is forecast to touch $226.2 million by 2011 and revenues in the ESDR therapy market could reach $2.81 billion in 2011 up from 2004 figures of $1.87 billion.

In regard to the growth prospects among various product sectors, the alternative site haemodialysis and acute renal failure therapy product sectors display a higher growth potential. Although the market for conventional haemodialysis products, used for patients with end stage renal disease is approaching maturity, there still exist significant growth possibilities for companies willing to develop novel treatment methods.

"While Germany is presently the biggest market in Europe, it also has the highest ESDR patients per million population (pmp) and as such will show the least growth in terms of patient numbers," says Staniforth. "Similarly Spain, France and Italy have a high EDSR pmp and the United Kingdom, with its increased funding for dialysis care and low EDSR patients pmp, is a highly profitable market that promises a healthy growth."

If you are interested in a virtual brochure, which provides manufacturers, end-users, and other industry participants an overview of the latest analysis of the Strategic Analysis of European Renal Replacement Therapy Market (B541/ B542), then send an e-mail to Radhika Menon Theodore, Corporate Communications, at rmtheodore@frost.com with the following information: your full name, company name, title, telephone number, fax number and e-mail address. Upon receipt of the above information, an overview will be sent to you via e-mail.

Background

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.

Media Contacts: Europe: Radhika Menon Theodore Corporate Communications P: +91-(044)-52044668 E: rmtheodore@frost.com Americas: Melina Trevino Corporate Communications P: +1-210-247-2440 F: +1-210-348-1003 E: melina.trevino@frost.com India: Surbhi Dedhia Corporate Communications P: +91-22-2832-4705 Ext: 131 E: sdedhia@frost.com Asia Pacific Jasminder Kaur Corporate Communications P: +65-68900937 E: jkaur@frost.com Australia: Sharmin Jassal Corporate Communications P: + 61-2-8247-8900 F: + 61-2-9252-8066 E: sjassal@frost.com

Frost & Sullivan

CONTACT: Europe: Radhika Menon Theodore, Corporate Communications, P:+91-(044)-52044668, E: rmtheodore@frost.com. Americas: Melina Trevino,Corporate Communications, P: +1-210-247-2440, F: +1-210-348-1003, E:melina.trevino@frost.com. India: Surbhi Dedhia, Corporate Communications, P:+91-22-2832-4705 Ext: 131, E: sdedhia@frost.com. Asia Pacific: JasminderKaur, Corporate Communications, P: +65-68900937, E: jkaur@frost.com.Australia: Sharmin Jassal, Corporate Communications, P: +61-2-8247-8900, F:+61-2-9252-8066, E: sjassal@frost.com

Source: PRNewswire

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