Developing Nations Become Increasingly Important Markets for Cancer Diagnostics

Although western nations have the highest incidence, they also have the highest survival rates from cancer, partially due to stringent testing programs. The lowest recorded incidences of cancer are in developing countries but they suffer higher rates of death by cancer. This should provide a market opportunity for IVD manufacturers in these countries.

Twenty-eight million (80%) of the people who die, live in low- and middle-income countries, yet less than 1% of private and public funding for health is allocated to preventing and controlling cancer in these areas. A rapidly increasing middle class in Latin America, India, Asia Pacific, and the Middle East account for 14% of the market, with the rest of the world accounting for the remaining 3%.

“These nations [developing countries] are in a continuous fight against HIV, infectious and waterborne diseases that eat away at their healthcare budgets,” said Shara Rosen, Kalorama analyst and the author of the report. “Little has been left to diagnose and treat cancer.”

As these nations develop, cancer treatment and testing should be top priorities, while developed nations try to find ways to reduce spending. In Europe, the aging of the population coupled and its mostly unhealthy lifestyle is likely to double the current number of cancer-related cases by 2020. But most of Europe is under financial distress and crumbling healthcare systems are finding it difficult to cover basic cancer diagnostics. Japan's commitment to cradle to grave health care coverage would normally result in a robust market. However, Japan has looked to prevention programs to offset the cost of treatment.

The report says the US remains the world driver of cancer test innovation and is the major market for cancer tests and test services, but payers are beginning to rationalize the use of some high-priced tests. The US with only 5% of new cancer patients in the world per year, accounts for 49% of the market for cancer diagnostics.

“Growth in developing markets such as Latin America, non-Japan Asia and the Middle East should be near 10% per year from 2012 to 2017,” Shara Rosen said.

Cancer is the main cause of death in urban China and the second one in rural China. Cancer Control programs in China focus on prevention, early diagnosis, and treatment. In June 2009, the China Ministry of Health launched six major public health programs including giving booster shots of the hepatitis B vaccine to those under the age of 15 and providing a free screening program for breast and cervix cancers among the rural women in 200 counties. In Brazil, screening programs for HPV have been implemented. These are just some of the efforts launched in what have been called “rest of world” regions in the past.

The Kalorama report has market estimates and forecasts for every major segment of cancer diagnostics. The report profiles key companies in the industry and talks about future product developments and industry trends.

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