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Reimbursement Regulations Underline the Need for Innovative Marketing and Product Strategies in the European Enteral Feeds Market

Posted on: Monday, 9 January 2006, 06:00 CST

LONDON, January 9 /PRNewswire/ -- Strict reimbursement regulations across the European healthcare spectrum are likely to have a detrimental effect on the uptake of enteral feeds by hospitals. However, the establishment of effective reimbursement, particularly within the rapidly expanding homecare sector, is set to boost adoption levels of enteral feed products.

Reimbursement regulations such as the legislation effected in Germany in October 2005, have reduced the disease/patient conditions that are entitled to receive enteral nutrition on a reimbursable basis (27 disease conditions reduced to 4). As a consequence, the hospital business as well as investments and innovations in this area by manufacturers are being negatively affected.

However, the rising importance of the homecare segment bodes well for eternal feed manufacturers. Due to persistent cost pressures in the hospital segment, there has been a shift from extended hospital treatment towards treatment at home. Also, growing awareness of the importance of therapeutic nutrition has contributed to patients increasingly use enternal nutrition products at home.

Already, enteral feeding at home in the United Kingdom is estimated to be growing annually at between 20.0 to 25.0 per cent. Moroever, the replication of successful reimbursement schemes for homecare management as have been undertaken in France, offer prospects for further market growth.

"A high-quality homecare structure is crucial to success and can be developed independently or through partnerships with homecare companies", says Paljit Mudhar, Research Analyst at Frost & Sullivan (http://healthcare.frost.com/). "For this purpose, a network of people is required to deliver the service so that products can be distributed efficiently."

Moroever, the existing restraints in the market can be overcome if efforts are made to develop better links with the Association for Parenteral and Enteral Nutrition. This will help enteral feed companies and manufacturers effectively lobby health authorities and support sustained demand for enteral feeds.

As more sophisticated, technologically advanced enteral feeds and devices develop, the shift from parenteral to enteral nutrition will increase penetration levels in hospitals as well as the homecare segment. At the same time, rising awareness of the beneficial role of enteral clinical nutrition in disease treatment and prevention coupled with the provision of improved, consistently high quality clinical data will promote market expansion.

"Key priorities are not necessarily to provide additional products, but to provide active ingredients, proof and clinical evidence," says Ms. Mudhar. "Companies have to understand they need to invest in this area. Better quality data will enable more successful registration, more successful reimbursement levels and better defence of existing reimbursement and further convince doctors the role nutrition plays."

Currently, companies are focusing on building strong pipelines with an increased focus on disease-specific solutions, prominently for cancer, diabetes, HIV, Alzheimer's disease and cardiovascular diseases. While general feeds remain important, the demand for enteral feeds for disease-specific solutions is expected to increase with lifestyle changes and an ageing population.

Supported by these trends, the enteral feeds market is expected to grow from $1,020.6 million in 2005 to $1,544.9 million by 2012. Despite the growth opportunities, consistent marketing and product strategies will remain difficult to implement. Systems such as the diagnosis related group (DRG) are present only in some European countries and this requires localised sales and marketing as well as regional production plants. Accordingly, a complex and fragmented market, with different reimbursement schemes and varied medical approaches, poses a major challenge to enteral feed manufacturers.

'To succeed, companies need to recognise markets are different and adapt their strategies to different areas, thereby creating a regional orientation." advises Ms. Mudhar. "Companies also need to blend their marketing and scientific areas to create opportunities."

Strong R&D in this market will be essential to promote credibility and encourage product uptake. Also, to achieve product differentiation, manufacturers need to ensure they understand and effectively position the core product in terms of its nutritional and functional value.

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 European Enteral Feeds Market (B774-54), 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

Keywords: Royal Numico NV, Norvartis AG, Abbott Nutrition, Frensenius Kabul AG, Nestle, B. Braun Melsungen AG, Baxter

Database of Key Industry Participants: European enteral feeds market, enteral feeds, institutional market, homecare market, enteral nutrition, general feeds, disease specific feeds, parenteral nutrition, enteral tube system, disease specific enteral feeds, reimbursement policies, enteral devices, malnutrition, cancer, diabetes, HIV, alzheimer's disease, cardiovascular disease, DRG system, diagnosis related group system

Frost & Sullivan

CONTACT: Media Contacts: Europe: Radhika Menon Theodore, CorporateCommunications, 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, CorporateCommunications, P: +61-2-8247-8900, F: +61-2-9252-8066, E: sjassal@frost.com

Source: PRNewswire

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