Introduction
This report focuses on the South African medical device supply and manufacturing industry, which generates estimated annual revenue of between R10bn and R11bn. Up to 95% of locally consumed products are imported into South Africa, mainly by large multinational companies. Locally produced products are either niche products or are exported because local manufacturers cannot match the low cost of imported products. A weak regulatory framework means that cheaper imported products are often of low quality, an area of concern to the local industry.
Strengths
• Steady demand for medical devices, even during an economic downturn.
Weaknesses
• Medical device research industry is underfunded, limiting the amount of research, innovation and manufacture of medical devices in South Africa.
• The small size of the domestic market and the fact that only approximately 5% of the devices used are manufactured locally.
• Weak regulatory framework for medical devices resulting in the import of poor quality medical devices and long registration periods for some medical device classes.
Opportunities
• A weakening Rand could be a positive driver for the local
development and manufacture of medical devices.
• E-health. The development of medical device applications
for use on an iPad, iPhone or handheld device, present
opportunities for the medical fraternity and patients.
• Improved healthcare services in the rest of Africa will mean
new markets for South Africa-based multinationals, local
manufacturers and importers.
• New product lines driven by market demand and the
introduction of innovative technology.
Threats
• Increasing number of imports, as well as increasing number of cheap imports of inferior quality.
• Inefficient public procurement and payment systems place smaller companies under pressure and reduce business confidence in local suppliers and distributors.
• The increasing drive to bring down healthcare costs could mean difficulties ensuring new technologically advanced devices are reimbursed by medical insurers and medical
aids.
• The introduction of the National Health Insurance (NHI) is positive but concerns exist over the current model and whether the scheme will be managed correctly.
Outlook
According to SAMED, the medical device manufacturing industry is set to grow at a steady rate, although not at the rate experienced five years ago, mainly because of the slow recovery of the European economy and the fluctuating Rand. Western Cape Minister of Economic Development, Alan Winde, believes the South African medical device industry will be worth an estimated R16bn by 2016. Tanya Vogt, SAMED Executive Officer, emphasised that the industry is “in a positive period” as “we are starting to see more South Africa-based multinational and distributors looking to enter other markets in the rest of Africa.” Growth in the local industry is expected to be driven by government support of technological innovation and the introduction of the NHI.
The Manufacture and Supply of Medical, Surgical and Orthopaedic Equipment in South Africa
2014
Full Report
R 1 900.00(ZAR) estimated $118.80 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 83.16 (USD)*
Table of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Supply Chain | 1 |
| 3. | SIZE OF THE INDUSTRY | 1 |
| 4. | STATE OF THE INDUSTRY | 4 |
| 4.1. | Local | 4 |
| 4.1.1. | Corporate Actions | 5 |
| 4.1.2. | Regulations | 5 |
| 4.1.3. | Black Economic Empowerment | 7 |
| 4.2. | Regional | 7 |
| 4.3. | International | 8 |
| 5. | INFLUENCING FACTORS | 8 |
| 5.1. | Regulatory Environment | 8 |
| 5.2. | Government Procurement | 9 |
| 5.3. | Reimbursement Practices of Medical Aid Schemes | 9 |
| 5.4. | National Health Insurance | 10 |
| 5.5. | Economic Environment | 10 |
| 5.6. | Innovation | 10 |
| 5.7. | Labour Resources | 10 |
| 6. | COMPETITION | 11 |
| 6.1. | Barriers to Entry | 11 |
| 6.2. | Research and Development (R&D) and Innovation | 12 |
| 7. | SWOT ANALYSIS | 12 |
| 8. | OUTLOOK | 13 |
| 9. | INDUSTRY ASSOCIATIONS | 13 |
| 10. | REFERENCES | 13 |
| 10.1. | Publications | 13 |
| 10.2. | Websites | 14 |
| ORGANOGRAM | 15 | |
| COMPANY PROFILES | 18 | |
| AKACIA HEALTH CARE (PTY) LTD | 18 | |
| ALLYUNG CC | 20 | |
| B BRAUN MEDICAL (PTY) LTD | 21 | |
| BECTON DICKINSON (PTY) LTD | 23 | |
| BRITTAN HEALTHCARE GROUP (PTY) LTD | 27 | |
| BSN MEDICAL (PTY) LTD | 28 | |
| CALASKA TRADING 132 (PTY) LTD | 29 | |
| CAPRICORN BIOMEDICAL (PTY) LTD | 30 | |
| CERDAK (PTY) LTD | 31 | |
| CHAMPION HEALTH CARE (PTY) LTD | 32 | |
| CONSULENS MEDICAL HEALTHCARE SOLUTIONS (PTY) LTD | 33 | |
| COVIDIEN (PTY) LTD | 34 | |
| DRÄGER MEDICAL SOUTH AFRICA (PTY) LTD | 35 | |
| ELECTRO SPYRES MEDICAL (PTY) LTD | 37 | |
| ELITE SURGICAL SUPPLIES (PTY) LTD | 38 | |
| ENGINEERING QUALITY ORTHOPAEDIC SOLUTIONS (PTY) LTD | 40 | |
| FIBRETEK DEVELOPMENTS (PTY) LTD | 41 | |
| FRESENIUS KABI SOUTH AFRICA (PTY) LTD | 42 | |
| GABLER MEDICAL (PTY) LTD | 44 | |
| ICT DIAGNOSTICS CC | 45 | |
| INFANTRUST PARENTING SOLUTIONS (PTY) LTD | 47 | |
| JOHNSON & JOHNSON MEDICAL (PTY) LTD | 48 | |
| LITHA HEALTHCARE GROUP LTD | 50 | |
| LODOX SYSTEMS (PTY) LTD | 52 | |
| MEDICAL DISTRIBUTORS (PTY) LTD | 53 | |
| MEDICAL INNOVATIONS (PTY) LTD | 54 | |
| MEDTRONIC (AFRICA) (PTY) LTD | 55 | |
| MOULDPROD EXHIBITIONS LTD | 56 | |
| OMNIMED (PTY) LTD | 57 | |
| OTICON SOUTH AFRICA (PTY) LTD | 59 | |
| PHILIPS MEDICAL SYSTEMS (PTY) LTD | 60 | |
| RESPITEK (PTY) LTD | 62 | |
| ROCHE PRODUCTS (PTY) LTD | 63 | |
| SAFMED (PTY) LTD | 65 | |
| SIEMENS (PTY) LTD | 67 | |
| SINAPI BIOMEDICAL (PTY) LTD | 69 | |
| SOUTHERN IMPLANTS (PTY) LTD | 70 | |
| SOUTHERN MEDICAL (PTY) LTD | 71 | |
| SPECMED MEDICAL SERVICES (PTY) LTD | 72 | |
| TI-TAMED (PTY) LTD | 73 | |
| VISION BIOTECH (PTY) LTD | 74 | |
| VOICEAMP (PTY) LTD | 76 | |
| WELCH ALLYN SOUTH AFRICA (PTY) LTD | 77 | |
| WONDERMED (PTY) LTD | 79 |
