Main Factors Driving Revenue Growth in Clinical Chemistry Identified

Kalorama’s report The Worldwide Market for In Vitro Diagnostic Tests covers clinical chemistry as well as the other major segments of clinical IVD testing.

The report includes market estimates for 2013 base year and forecasts to 2018. In addition to clinical chemistry, the other major IVD segments covered includes: Point-of-Care (POC) testing; Histology and Cytology; Lab-Based Infectious Disease Immunoassays by test; Molecular Assays; Hematology; Molecular Test Sales, Infectious Diseases; Lab-Based Immunoassay Sales by analyte type; Coagulation; Microbiology and Virology by Test Type; Blood Banking. Kalorama is currently conducting further research into the clinical chemistry market.

Kalorama expects modest growth in clinical chemistry despite predicted explosive growth in emerging markets such as India, China, and Brazil. This is because the US, Europe, and Japan account for at least 85% of the market and are expected to dominate for the next 5 years. Also, intense provider consolidation in the US, commoditization of most offerings, and increasing price pressures have pushed cost per test of routine chemistries about as low as possible.

“This is a mature market but there will be some growth, likely modest growth, from sales to emerging markets and expanding test menus,” said Bruce Carlson, publisher of Kalorama Information.

Despite the mature status of routine testing, the clinical chemistry market is continuously redefining itself via new test processes and menus. What growth will occur derives from new tests in lipid analysis, proteins, hormones and enzymes related to diabetes research, cardiovascular disease, cancer, and other acute and chronic conditions. The trend of adding new tests to the lab menu includes tests for homocysteine, anti-CCP, tumor markers, procalcitonin, Vitamin D, autoimmune ANAs, allergy, BNP, hsCRP, and hemoglobin A1c.

Clinical chemistry labs are challenged to add new tests with little increase in financial and human resources, in some cases even doing more with less. With cuts in government reimbursement rates, along with cost-cutting measures in general, clinical labs are exploring ways to improve productivity with smaller budgets. To survive, labs will need to run more tests in fewer sites, operate with less equipment, maintain lower operating costs, hire less skilled labor, and harness additional automation.

With increasing pressure to cut costs, top vendors and many central laboratories have invested in new systems that respond to the drive for automation to maintain or improve laboratory profitability. Automation optimizes efficiency and lowers errors by integrating mechanical, electronic, and informatics tools to perform various tasks.

Kalorama’s report is the result of extensive investigation via tracking of hundreds of companies for developments, trends, and financial results. This research is compiled with opinions, observations, and insights of experts to produce an unparalleled vision of the IVD industry. The information presented is derived on publicly available sources such as company, government, and medical organization reports. The analysis is based on the author's industry knowledge combined with literature searches and interviews with industry professionals and experts in the IVD industry.

Related Links:

Kalorama Information
The Worldwide Market for In Vitro Diagnostic (IVD) Tests, 9th Edition