• by bcarlson@marketresearch.com
  • May 28 2014
  • U.S. IVD


For Roche, Brave Face on Reimbursement Cuts

For Roche, Brave Face on Reimbursement Cuts

Roche won’t cut prices despite reimbursement reductions, according to a recent Reuters story. This isn’t surprising according to Kalorama. We think that there’s a ’have to buy’ element to the diagnostics industry that will sustain markets. We cover the United States in vitro diagnostic industry in our new report

"Labs will still have to keep buying and some companies will just ride out the storm," said Kalorama’s Emil Salazar, author of our US IVD report. "At most the US is 25% of Roche’s diagnostics business."

Execs with Roche’s diagnostics arm remain bullish about U.S. growth prospects even as reimbursement cuts place new pressures on the sector overall. An executive with the company anticipates booming demand to the point that price reductions aren’t on the table. "There are reimbursement reductions, but we also see an increase in testing volumes," Roland Diggelmann, chief operating officer of Roche Diagnostics Global, told Reuters. "We see really good demand. Diagnostics is the key to sustainable healthcare." Diggelmann cited the strength of the glucose testing market and the increase of diabetes patients needing testing. He said the said the company’s diagnostic business grew 7%.