GLOBALNUCLEAR MEDICINEMARKET

Market Shares, Forecasts& Trends

2014 - 2019

mordorintelligence.com

TABLE OF CONTENTS

1 INTRODUCTION ................................................................................................................................. 1

1.1 REPORT DESCRIPTION ..................................................................................................................... 1

1.2 MARKETS COVERED .................................................................................................................. 2

1.3 MAJOR STAKEHOLDERS ............................................................................................................ 3

1.4 RESEARCH METHODOLOGY ....................................................................................................... 5

2 EXECUTIVE SUMMARY ...................................................................................................................... 6

3. MARKET OVERVIEW .............................................................................................................................. 7

3.1Market Drivers ................................................................................................................................. 7

3.1.3 Growing Public Awareness for healthcare ................................................................................... 7

3.2 MARKET CONSTRAINTS ...................................................................................................................... 8

3.2.1 Short Half life of Radiopharmaceuticals ......................................................................................... 8

3.2.2 High Capital Investment ................................................................................................................ 8

3.2.3 Regulatory Guidelines ................................................................................................................... 8

3.2.4 Reimbursement ......................................................................................................................... 9

3.3 OPPORTUNITIES ........................................................................................................................... 9

3.3.1 Increasing Imaging Technologies ...................................................................................................... 9

3.3.2 Potential Radioisotopes in Pipeline ............................................................................................. 9

3.3.3 Increasing Neurological Applications ........................................................................................ 10

3.3.4 Cyclotron based production ..................................................................................................... 11

3.4 THREATS .................................................................................................................................... 12

3.4.1 Shutdown of Nuclear Reactors ................................................................................................. 12

4. GLOBAL NUCLEAR MEDICINE MARKET SEGMENTATION........................................................................ 13

4.1 Global Nuclear Medicine Market ..................................................................................................... 13

4.2 Global Markets: Segmentation by Diagnostics ................................................................................. 14

4.2.1 Introduction ........................................................................................................................... 14

4.2.2 SPECT Market ........................................................................................................................ 16

4.2.3 PET Market............................................................................................................................. 18

4.3 Global Markets: Segmentation by Therapeutics ............................................................................... 20

4.3.1 Introduction ........................................................................................................................... 20

4.3.2 Alpha Emitters ........................................................................................................................ 20

4.3.3 Beta Emitters ......................................................................................................................... 20

4.3.4 Brachytherapy ........................................................................................................................ 21

4.4 GLOBAL MARKET SEGMENTATION BY APPLICATION ....................................................................... 24

4.4.1 SPECT Market ........................................................................................................................ 24

4.4.2 PET Market............................................................................................................................. 24

4.5 MARKET SEGMENTATION BY GEOGRAPHY ......................................................................................... 25

4.5.1 North America Nuclear Medicine Market ...................................................................................... 25

UNITED STATES .............................................................................................................................. 26

CANADA ......................................................................................................................................... 27

MEXICO .......................................................................................................................................... 28

4.5.2 EUROPE ..................................................................................................................................... 28

GERMANY ...................................................................................................................................... 28

UNITED KINGDOM ........................................................................................................................... 29

FRANCE ......................................................................................................................................... 30

SPAIN ............................................................................................................................................ 31

ITALY ............................................................................................................................................. 31

4.5.3 ASIA - PACIFIC ........................................................................................................................... 35

India............................................................................................................................................... 36

China.............................................................................................................................................. 37

South Korea .................................................................................................................................... 38

Japan ............................................................................................................................................. 40

5. COMPETITIVE LANDSCAPE .............................................................................................................. 44

5.1 MERGERS, ACQUISITIONS & SPIN OFFS.......................................................................................... 44

5.2 COLLABORATIONS ........................................................................................................................ 46

5.3 PRODUCT LAUNCHES .................................................................................................................... 49

6. PROFILES OF KEY COMPANIES ........................................................................................................ 53

6.1 COVIDIEN ...................................................................................................................................... 53

6.2 LANTHEUS MEDICAL IMGAGING..................................................................................................... 55

6.3 IBA GROUP ................................................................................................................................... 57

6.4 TRIAD ISOTOPES ........................................................................................................................... 60

6.5 SIEMENS HEALTHCARE ................................................................................................................. 62

6.6 NTP RADIOISOTOPES .................................................................................................................... 64

6.7 Bracco Imaging S.P.A. ................................................................................................................... 65

6.8 BRACCO PHARMA ......................................................................................................................... 66

6.9 Cambridge Isotope Laboratories, Inc. .............................................................................................. 68

6.10 Cardinal Health, Inc...................................................................................................................... 70

6.11 GE Healthcare (Subsidiary Of General Electric Company)................................................................ 73

6.12 Nordion, Inc................................................................................................................................. 75

6.13 Taiyo Nippon Sanso Corporation................................................................................................... 78

6.14 Fujifilm Holdings Corporation ....................................................................................................... 80

6.15 Eczacibasi-Monrol ....................................................................................................................... 82

6.16 Isotec, Inc. (Sigma-Aldrich) .......................................................................................................... 84

6.17 Petnet Solutions, Inc. (A Subsidiary Of Siemens Medical Solutions Usa, Inc.) ................................... 86

1. INTRODUCTION

1.2 MARKETS COVERED

Nuclear medicine/ Radiopharmaceutical market is showing highest potential in terms of the market

growth and trends. The radiopharmaceuticals market can be segmented into further smaller

markets based on applications, technology and geographical regions.

The markets covered in the report

Radiopharmaceutical Therapeutic Market

Radiopharmaceutical Diagnostic Market

North America Radiopharmaceutical Market

Europe Radiopharmaceutical Market

Asia-Pacific Radiopharmaceutical Market

Each market is discussed with the following points:

1 Identify disease conditions currently being treated with medical radioisotopes in specific region.

2 Provide an overview of the radiopharmaceuticals in each market and forecast market size for

the year 2012-2020.

3 Identify specific medical isotopes that offer greatest market opportunities in the market.

4 Identify the market drivers, constraints, opportunities and Threats for the market.

5 Identify the major radiopharmaceutical companies currently involved nuclear therapy, nuclear

imaging market and the strategies followed by the major competitors.

1.4 RESEARCH METHODOLOGY

The research methodology can be put into the following sequence:

1) Secondary Research: Information was collected from a number of public and paid data sources.

Public sources involved Government websites, publications from the genetic testing programs of

different countries, company annual reports, white papers and research publications by recognized

industry experts. Paid data sources include authentic industry databases.

2) Primary Research: After collecting data from secondary sources, primary interviews were

conducted with stakeholders at different points of the feed value chain like manufacturers,

distributors, ingredient suppliers, companies producing enzymes and key opinion leaders of the

industry. Primary research is used both to validate the data points obtained from secondary

research and to fill any gaps in data.

3) Market Analysis: The market analysis phase involves analyzing the collected data, market

breakdowns and forecasting. Macroeconomic indicators and bottom-up and top-down approaches

are used to arrive at a complete set of data points that give way to valuable qualitative and

quantitative insights. Each data point is verified by the process of data triangulation to validate the

numbers and arrive at close estimates.

4) Expert Validation: The market analysis data is verified and validated by a number of experts, both

in-house and external.

5) Report Writing: After the data is curated by the aforementioned highly sophisticated process, the

analysts begin to write their report. Garnering insights from data and forecasts, insights are drawn

to visualize the entire business ecosystem in a single report.

3. MARKET OVERVIEW

3.1Market Drivers

3.1.1 Increasing Incidents of Cancer and Cardiac Ailments

Increasing incidents of cancer and cardiac ailments are the major drivers for the market. Nuclear

medicine shows a huge potential in treating cardiac and cancer diseases. According to a survey by

National Cancer Institute, the number of new cases of cancer sites was 460 per 100,000 men and

woman per year. While the number of deaths was 176 per 100,000 men and women per year. Cardiology

applications will continue to demonstrate strong growth in the market.

3.1.3 Growing Public Awareness for healthcare

With increasing incidences of cancer and cardiac diseases people are getting more awareness for the

treatment of these diseases. Nuclear medicine holds a promising growth in the detection and imaging

of these diseases because of noninvasive and very fast method. The route of administration could be

through mouth, through injections or placed into the eye or into the bladder. The market is also

expected to show growth from rising income levels, growing affluence and the strong focus on early

diagnosis for improved treatment results.

3.2 MARKET CONSTRAINTS

3.2.2 High Capital Investment

The nuclear medicine market’s major obstacle for the future growth is high capital investment needed

for the generation of radionuclide. The initial investment for a cyclotron is $2 million, with an additional

$0.5 million needed for renovation and installation. At a minimum, another $0.8 million is needed to

cover annual operating costs, assuming no major repairs are needed. The high capital investment in

turn increases the cost of imaging and treatment which affects the market growth in developing

countries.

3.2 OPPORTUNITIES

3.3.2 Cyclotron based production

Majority of the radioisotopes are produced in nuclear reactor, however cyclotrons also produce

radioisotopes which complement those produced in nuclear reactor. 80% of the isotopes used in

medical procedures come from nuclear reactors. But there is huge market for the production of

radioisotopes using cyclotron. Here are some of the cyclotron based radioisotopes used in medical

imaging.

Radioisotope Application

Copper-64 Used to study genetic disease affecting

copper metabolism

Gallium-67 Used in imaging to detect tumours.

Iodine-123 Used in imaging to monitor thyroid function.

Thallium-201 Used in imaging to detect location of damaged

heart muscle

Carbon-11 Used to study brain physiology using PET.

4. GLOBAL NUCLEAR MEDICINE MARKET SEGMENTATION

4.2 Global Markets: Segmentation by Diagnostics

4.2.1 Introduction

The global market for diagnostics is comprised of different sub segments which are SPECT diagnostic

based market and PET diagnostic based market. The global SPECT market which was valued as an

approximately $3 billion in 2012, has shown a good rise in the market and is expected to become a $4

billion market by 2014 and is expected to reach as high as $5.3 billion by the end of 2017. This growth is

accompanied with a CAGR of about 11.14%. This CAGR and the steady growth in the SPECT market can

be attributed to the wide range of applications it can offer in different areas of medicine. SPECT has its

majority applications in areas like Cardiology and Neurology.

From a geographical point of view North America, specifically USA has the major market share as high

as 40% of the global market share. This can be attributed to the technological advancements and the

growing incidence of cancer rates and chronic disease population globally. Following North America is

Europe which has the highest market share in the global diagnostics market. Recent developments and

studies have shown that emerging markets such as India, China and Korea have shown great potential

in terms of growth of the market. Their respective CAGR’s is expected to increase and show a greater

growth than European market by the end of 2017.

Positron Emission Tomography, normally referred to as a PET is a relatively new concept when

compared with the likes of SPECT has shown great potential in terms of growth and potential value.

Though the market value may not be as high as SPECT, it is showing a greater growth rate. The PET

market which was valued as a $540 million market globally is expected to reach $680 million by 2014

and is expected to reach a market value as high as $950 million by 2017 showing a CAGR of about

12.05%. This potential high growth is due to the wide range of applications it has in the field of

Oncology. This application coupled with the growing rate of cancer population makes it an excellent

market worth investing in due to its high potential.

From a geographical point of view, North America has the major share of the global market, followed by

Europe and APAC. Emerging nations have become a serious threat to the already developed nations in

terms of future potential and market value.

Global Nuclear Medicine Diagnostics Market by Geography for 2012-2017(in billion USD)

2012 2013 2014 2019

North America

4.3 Global Markets: Segmentation by Therapeutics

4.3.4 Brachytherapy

The other segment in this category is Brachytherapy. It is a form of radiotherapy where a radiation

source is placed inside or next to the area requiring treatment. Brachytherapy is commonly used as an

effective treatment for cervical, prostate, breast, and skin cancer and can also be used to treat tumors in

many other body sites. The Brachytherapy market can be segmented on the type of radiation sources

used in the process. The radiation sources used are Cesium 131, Iodine 125, Palladium 103 and Iridium

192. The clinical applications of this market are in the fields of cervical cancer, Prostate cancer, Breast

cancer, Skin cancer and Coronary/Vascular cancers.

Global Nuclear Medicine Therapeutics Market by Segment for 2012-2017 (in million USD)

2012 2013 2014 2019

Brachytherapy

4.5 MARKET SEGMENTATION BY GEOGRAPHY

4.5.2 EUROPE

GERMANY

Germany forms the largest European market for Nuclear medicine, accounting for an estimated share of

20.8 % equating to US$0.300 billion, which is further projected to reach US$0.485 billion by 2017 at a

robust CAGR of 10.08% during 2012-2017.

The definition of nuclear medicine in Germany is laid out in the specialty training regulation

(Weiterbildungsordnung, WBO) of the German Medical Association on Nuclear Medicine, it includes:

Use of unsealed radioactive sources in diagnosis and therapy.

Nuclear magnetic resonance imaging (MRI), but also

Sonographic tests and the treatment of thyroid diseases, except for surgical procedures.

The medical aspects of radiation protection from another area of competency.

In Germany the duration of training in the field of nuclear medicine is 5 years, of which 1 year must be

spent in clinical inpatient patient care, and another 6 months of training in another field is possible.

Region 2012 2013 2014 2019 CAGR

Germany XX 0.330 XX XX XX

UK XX XX XX 0.33 XX

France 0.216 XX XX XX XX

Spain XX XX XX XX XX

Italy XX XX 0.130 XX XX

Rest of Europe XX XX XX XX 10.91%

Total XX XX XX XX XX

6. PROFILES OF KEY COMPANIES

6.1 COVIDIEN

Covidien PLC

20 Lower Hatch Street

Dublin 2, Ireland

Tel: +353 1 438 1700

OVERVIEW

Covidien Public Limited Company is an Irish- headquartered global healthcare products company and

manufacturer of medical devices and supplies. Covidien became an independent publicly traded

company after being spun off from Tyco International in 2007. It is a leading manufacturer of medical

devices and supplies with revenue of over $10.2 billion in the year 2013. With a workforce of around

38,000 in more than 70 countries and products sold in over 150 countries.

PRODUCTS & SERVICES

The products and services of this company include Endomechanical instruments, Soft Tissue repair

products, Energy devices, Oximetry & Monitoring products, Airway & ventilation products, Vascular

products, sharp safety products, Specialty pharmaceuticals, Active pharmaceutical ingredients,

Radiopharmaceuticals, Nursing care products and Medical surgical products.

FINANCIALS

The total revenue generated for the year 2013 has been as high as $10.2 billion. The company showed a

growth of about 4% compared to the revenue generated in the year of 2012. The earnings before income

and taxes is $2.23 billion showing a 5.2% increase compared to the earnings before income and taxes of

the year 2012. The net income for the year of 2013 is $1.7 billion which is 10% less than that of the net

income in the year 2012.

RECENT DEVELOPMENTS

Medtronic, a global leader in medical services and technology and Covidien, a global leader in

medical technology have announced that they have reached a definitive agreement under which

Medtronic has acquired Covidien in a cash and stock transaction.

Covidien plc (NYSE: COV) today announced that it has closed its acquisition of Given Imaging

Ltd., providing the company additional scale and scope to serve a significant medical specialty,

the multi-billion dollar global gastrointestinal (GI) market.

Covidien (NYSE: COV), a leading global provider of healthcare products, announced the

expansion of its portfolio of radiofrequency ablation (RFA) catheters with the launch of the

Barrx™ Channel RFA Endoscopic Catheter for treating Barrett’s esophagus and certain

gastrointestinal bleeding disorders.

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