Radiopharmaceuticals and Contrast Media Market Growth Upturn Predicted in Europe

Even while kept under control by price sensitivity and reimbursement procedures, the European market continues to grow for the predictable future, according to new market research.

In many European countries, the distribution of contrasting agents is predominantly through public tenders. Because of these tender systems, the median price of contrasting agents is reducing at the rate of 4%-9% per year in some areas, according to Frost & Sullivan, an international growth consultancy company (Mountain View, CA, USA).

Although the volume of contrasting agents used is increasing, the market is not able to grow at a very high rate because of price erosion and restricted revenue per procedure. In the instance of radiopharmaceuticals, although there is an increase in the comparative number of vials being marketed, there is not a big difference in the overall revenue generated, because of decreasing prices.

New analysis from Frost & Sullivan revealed that the market earned revenues of USD 1.39 billion in 2011 and estimates this to reach USD 1.69 billion in 2017. As growth of the contrast media market in X-ray and computed tomography (CT) developments has attained maturity, revenue growth is accounted chiefly to the magnetic resonance imaging (MRI) contrast and ultrasound contrast segment growth.

“The increase in aged demographic would have an indirect impact on the contrast media market, as they would lead to a greater number of medical procedures and thus to a greater use of contrast media. This is one of the most important driving factors for this market,” noted Frost & Sullivan program manager Sujith Eramangalath.

In contrast, the expanded use of nuclear medicine in other fields than oncology, combined with a large number of patients diagnosed with these disorders, is fueling the radiopharmaceuticals market. However, the radiopharmaceuticals market in Europe is extremely regulated in terms of reimbursement and utilization. “Many European countries have strict reimbursement policies regarding radioactive agents,” added Mr. Eramangalath. “This is a key issue that affects the growth of this market, as the introduction and the pricing of the agent are decided by the healthcare authorities. Considering the high amount of capital involved in the development of radiopharmaceuticals, lack of reimbursement causes dissatisfaction among manufacturers, and in turn among investors.”

Moreover, radiopharmaceuticals have a short half-life period, and have to be used before their half-life period, because they lose half of their radioactivity within this duration. Transport and logistics of radioactive material is also a key limitation. Transport companies need to acquire specific certifications and have safeguards for radiopharmaceuticals, and only a selected few transport agencies have the appropriate capabilities for transporting and handling such products.

“It is therefore necessary that end users are educated by companies about effectiveness, safety measures, and overall developments in imaging procedures,” concluded Mr. Eramangalath. “This is likely to help in brand building and ensuring customer loyalty, apart from providing competitive advantages over other participants. It is also recommended that companies collaborate with academic institutions and training facilities to increase awareness about nuclear medicine among the medical fraternity.”

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