• by bcarlson@marketresearch.com
  • August 3 2016

Retail Clinics an Evident Focus at AACC as #1 IVD Company Presents

Retail Clinics an Evident Focus at AACC as #1 IVD Company Presents

As Kalorama continues to cover the American Association of Clinical Chemistry in Philadelphia on Tuesday, we are tempted to say ’the Empire Strikes back,"  While Monday’s focus was controversial start-up Theranos, on Tuesday major vendors of the $60 billion-plus in vitro diagnostic industry unveiled their new products, enhancements and plans for existing marketed or in-development devices with a clear pathway for FDA or CE Mark.  Kalorama conducted meetings with top-tier vendors and growth companies and noted new product advances that will be part of our reports.  

If the general gist of the presentation of Theranos was that the IVD industry needs to innovate and develop smaller systems, such plans are already underway at a number of large companies. Small systems are on the radar of some very big companies.

Roche Diagnostics, for example, announced it’s minature PCR system the cobas Liat at the meeting, CLIA-waived for flu a/b, RSV and step. The new product is part of the company’s plans to continue to lead in the market.  POC was a notable focus as was IT and connected equipment.   Among their focus is keeping market share by competing with offerings in both centralization and de-centralization trends, competing in POC, making acquisitions where needed, as well as creating a virtual core lab.  A key strategy is trading on heritage and legacy of their large systems to ensure that they pick up all of the POC and other tests that are being conducted in a ‘virtual connection.’ that would replace the physical trackware of labs today.

Roche Diagnostics North American CEO Jack Phillips spoke to media and in several slides highlighted the company’s #1 status in the world and in the US in IVD.  He also highlighted the consolidation of hospitals, the decentralization of testing venues, and notably the proliferation of retail clinics.    

There are over 2,000 retail clinics. There was a time that retail clinics might have been a passing fad, about ten years ago when we began coverage of them.  Now they are very much on the radar of large concerns.Retail Clinics made of $1 billion dollars in sales, according to Kalorama’s report on retail clinics  http://www.kaloramainformation.com/Retail-Clinics-Growth-8792050/,  Kalorama will update the report in August.    

He also noted that vendor-hospital contract lengths were increasing, perhaps due to hospital consolidation, noting that "7 years is common now." for contracts as hospitals seek stability.