Medical division
In the medical division, Dräger develops, produces, and markets system solutions, equipment and services for the acute point of care (APOC) process chain. These include emergency care, perioperative care (in connection with the operation), critical care and perinatal (neonatal) care. The Group portfolio comprises products for therapy, monitoring information management and process support. Dräger is one of the global market leaders with its products for ventilation, anesthetics, ongoing surveillance of vital signs as well as their accessories and consumables. In recent years, Dräger considerably improved its market position as a system provider with products such as integrated IT solutions for the operating room and gas management systems.
Industry performance
2011 saw a constant stream of global demand with slight regional fluctuations. In Germany, for instance, demand for sophisticated medical technology remained high. In the rest of Europe however, the debt crisis in individual countries had an increasingly negative impact. Government austerity programs led to a decline in investment volumes in South Europe that also applied to investments in the hospital sector. Russia, on the other hand, showed a positive performance, driven by political events such as the presidential election. In the Americas – particularly in the US – demand for medical technology was still strong in the first half of the year, then dropped significantly in the second half on account of the US budget deficit. With Chinaʼs and Indiaʼs help, which both continued to invest in their infrastructures, and due to an overall increase in demand for high-quality medical technology, Asia remained the global growth driver. The impact of the natural and nuclear disaster in Japan and political developments in North Africa on global demand was minimal. Overall, Dräger profited from growing demand for sophisticated medical technology for the optimization of clinical work processes.
Future situation of the medical technology industry
Dräger expects overall positive performance in the medical technology markets in 2012. The German professional association Spectaris, for instance, anticipates 5 percent growth. In Germany, the outlook should be cautiously optimistic. As medical technology was little affected by the economic crisis, the outlooks for other Central European countries like the Netherlands and Austria are also positive. Switzerland is forecasting a 3.4 percent rise in healthcare spending in 2012. North Europe can be expected to grow steadily, as standards are high in this region. Norway, for instance, plans to improve and modernize its healthcare infrastructure. Budget cuts in crisis-hit South Europe are taking their toll on the healthcare sector: In Greece, for instance, around 10 percent of all public hospitals were closed by the end of 2011 with further savings measures being on the horizon. Turkey is proving to be one positive exemption: As the country is modernizing its government-run hospitals and the number of private healthcare facilities is increasing, German Trade & Invest is anticipating medical technology sales there to rise by 10 percent per year. Sales opportunities are likely to remain high in Russia as the country continues to modernize its healthcare system. The Russian Interior Ministry forecasts investments of USD 16 billion by 2020. In North America, the percentage of elderly people in the total population is increasing. This is pushing up spending in the healthcare sector and is therefore likely to lead to moderate growth. The US might cut its budgets, however, on account of the necessary budget consolidations. Demand for medical technology continues to be high in Brazil, as both the private and public healthcare sectors are being developed intensively. The 2012 forecast for the Asia / Pacific region is positive. Demand in densely populated countries like India and China continues to be high and other nations like Singapore and Thailand are also showing great growth potential. For the Japanese market, on the other hand, Germany Trade & Invest forecasts rather moderate growth. In the other countries region, the German professional association Spectaris, for instance, expects investments in medical technology to be made in Algeria, Tunisia and Libya after the end of the so-called Arab spring in parts of North Africa. Taking into account the basically unchanged cost pressure in the global healthcare sector, Dräger expects a steady demand for high-quality medical technology products that optimize processes and improve efficiency. The Group is excellently positioned to meet these requirements with its solutions.