The document summarizes opportunities in the US healthcare market, particularly resulting from healthcare reform under the Affordable Care Act (ObamaCare). It notes that the US market is the largest globally and is growing. ObamaCare aims to expand insurance coverage and reduce costs. This is driving demand for new technologies, services, and business models focused on prevention, home care, and integrating wellness. The document outlines market sizes and growth rates for key sectors like pharmaceuticals, medical devices, and digital health. It promotes a Finpro program to help Finnish healthcare companies explore opportunities in major US industry clusters.

1. ObamaCare - a new opportunity
in US Healthcare
Market Opportunity Day 17.5.2013
Eero Toivainen, Finpro

2. Healthcare and pharmaceuticals market in the US
• The US medical and healthcare
market is the single biggest market
in the world – the healthcare
expenditures comprise 47.5% of
the global expenditures
• The market is growing at almost a
10% rate and the share of
imported products and
technologies is 32% and rising.
• The US is also the center for
healthcare innovations as many of
the most successful healthcare
devices, practices and
technologies originate in the US
5/21/2013 © Finpro 2

3. The Drivers of the Business Opportunity
• Healthcare reform (ObamaCare), a growing elderly population
with an associated disease burden, changing regulatory
guidelines, new drug launches, and a growing mobile and
wellness sector are main drivers
– In order for to meet the future demand, the industry needs new
ideas, technologies, and partners from abroad
– Many of the companies in the industry are investing in executive
education and preparing new processes to learn how to work with
European SMEs and start-ups
• The new healthcare mindset stems from healthcare reform
(ObamaCare) and the necessity to cut costs and improve the
quality of care
– Hospitals are now accountable and are being penalized for
readmissions within 30 days.
– There is a new need for “hospital at home” and new easy to use
home care solutions – prevention and mobile are growing
5/21/2013 3© Finpro

4. Healthcare Reform (ObamaCare)
• ObamaCare is aimed at reforming the American health care
system
• The objective is regulating the health insurance industry while
improving the quality of care and reducing costs
• New technologies, services, and mindset are needed –
American companies are looking outside for the solutions
• Total Health – the concept of integrating prevention, wellcare,
lifestyle and healthcare is creating a new opportunity for new
players
• ObamaCare will expand Medicaid and Medicare enabling
approximately 50 million new people to be insured, thereby
creating a need for new products and services
• ObamaCare will come into effect on 2014 and now is the time
to become involved in the industry
5/21/2013 4© Finpro

5. Healthcare and pharmaceuticals market in the US
5/21/2013 5© Finpro
Hospital care
31 %
Physician and clinical
services
20 %
Dental care
4 %
Nursing home and
home health
8 %
Prescription drugs
10 %
Research, structures
and equipment
investments
6 %
Other Items
21 %
Breakdown of the healthcare expenditures in the US by
category, 2011
Source: US Gov.

6. Life Science Opportunities in the US
• Healthcare and medical devices
• Disease specific pharmaceuticals and biotechnology product
• Hospital equipment and operating room solutions
• Electronic medical data and HCI
• Exercise and wellness hardware, software and interfaces,
preventive medicine
• Personalized medicine
• Food and food additives.
5/21/2013 6© Finpro

7. Pharmaceuticals, medical devices and operating
room equipment
• Pharmaceutical market is a
several hundred billion dollar
business in the US
• Generic pharmaceuticals, a $53
billion dollar industry, is expected
to be one of the fastest-growing
sectors in the country with average
expected growth of 6.3% until
2017
• Medical devices, hospital and
operating room solutions and
equipment are also lucrative and
growing market segments
• Additional emerging field is the
electronic medical data and
electronic records market
5/21/2013 © Finpro 7

8. Pharmaceuticals, medical devices and operating
room equipment
5/21/2013 8© Finpro
98,6
123,9
164,4
220,5
0
50
100
150
200
250
2005 2010 2015 2020
Medical Devices Market in the US, $bn
Source: GlobalData
CAGR
5.5%

9. Pharmaceutical Market by Segment in the US
5/21/2013 9© Finpro
247
307
380
471
19 22 27 34
0
100
200
300
400
500
2005 2010 2015 2020
Prescription Drugs OTC Drugs
Pharmaceutical Market by Segment in the US, $bn
CAGR
4.4%*
*Prescription + OTC

10. Biotechnology
• The US biotechnology revenues formed
ca. 70% of global public biotech
companies’ revenues in 2011
• The decline in revenues of US biotech
companies in 2011 was driven by three
large acquisitions by non-biotech
acquirers – after normalizing for these
acquisitions, the revenues increased by
12%
• In 2011 the US FDA approved more new
drugs than at any time since 2004
• 70% of the approvals were approved in
US before they received approval
anywhere else in the world
• As in prior years, cancer continues to
dominate the US clinical pipeline
• Neurology will become increasingly
important in the years ahead as aging
populations increase the number of
neurodegenerative diseases
5/21/2013 © Finpro 10

11. The US Clinical Pipeline by Indication
5/21/2013 11© Finpro
Cancer
44%
Neurology
10%
Infectious disease
9%
Metabolic and
endocrine
6%
Autoimmune
4%
Cardiovascular
4%
Respiratory
4%
Other
19%
The US Clinical Pipeline by Indication, 2011
Source: Ernst &Young

12. Biotechnology revenues in the US
5/21/2013 12© Finpro
*Publicly traded biotechnology companies in the four established clusters – the United States, Europe,
Canada and Australia
Biotechnology revenues in the US and the rest of
the world* (Public company data; USD billion)
61
65,1
56,2
61,1
58,8
19,3 21,7 22,1
23 24,6
0
20
40
60
80
2007 2008 2009 2010 2011
US
ROW*
Source: Ernst &Young

13. Hospital Equipment and Medical Devices
• US medical device market constitutes 40% of global markets and is
estimated to top $200 billion in 2020
• The biggest segments are the orthopedic devices,
in Vitro Diagnostics (IVD), cardiovascular devices, and ophthalmic
devices
• During 2010-2020 the fastest growing segments are expected to be
the orthopedic devices, IVD, and hospital supplies
• Especially the patient monitoring device market is expected to grow
rapidly in the coming years
• Major drivers are aging population, high healthcare spending, early
diagnosis of diseases, high prevalence of chronic diseases, sedentary
lifestyle of US population, and health tourism
28.3.2013 13Finpro

14. Medical Device Market in the US by segment
5/21/2013 14© Finpro
Orthopedic Devices
16 %
In Vitro Diagnostics
15 %
Cardiovascular
Devices
12 %Ophthalmic Devices
10 %
Hospital supplies
6 %
Others
41 %
Medical Device Market in the US by segment, 2010
Source: GlobalData

15. Medical Device Market in the US
28.3.2013 15Finpro
98,6
123,9
164,4
220,5
0
50
100
150
200
250
2005 2010 2015 2020
Medical Device Market in the US, $bn
Source: GlobalData
CAGR
5.5%

16. Healthcare Informatics and Mobile Health
28.3.2013 16Finpro
• The global mHealth market is expected grow at a CAGR of 41.5% and to reach
$10.2bn by 2018
• US is the largest market for mHealth solutions with a size of $660m or ca. 50% of
the global market
• The monitoring services is the largest and fastest growing mHealth segment
constituting 60% of the total market followed by diagnostic services and healthcare
systems
• Cardiac rhythm management, sleep therapy and ambulatory ECG are the main
monitoring device segments – sleep therapy, blood pressure monitoring, glucose
monitoring and medication adherence are predicted gain more momentum
• Strong growth forecasted for mHealth applications while an additional emerging
field is the electronic records market
• Cloud computing, spread of smartphones, ease of use functionalities, rising health-
care spending, and demand for independent aging solutions and post-acute care
service are driving the growth of mHealth

17. Healthcare Informatics & Mobile health
5/21/2013 17© Finpro
$1.3
bn
$10.2 bn
Global mHealth market size & segments, $billion
2012 2018
Source: Global Data
80%
Software &
services
12%
Hardware
8%
Networks &
connectivity

18. Healthcare Informatics & Mobile health
5/21/2013 18© Finpro
The metric only accounts for devices that use fixed wireless, cellular, and
fixed line connections.
Source: Berg Insight
Connected home medical monitoring devices, million units
(World 2011-2017)

19. The most important Health & Life Science Clusters in the US
Bay Area Life
Science Biotech,
Informatics, VC, Mobile
Los Angeles
Biotechnology,
Pharmaceutical,
Medical devices
Seattle
R&D, Drug
Development, VC, HIT
New York/
New Jersey/
Philadelphia
Pharma, Mobile,
Biotech, Medical
Devices, VC
Boston Biotech,
Pharma, VC, mobile,
devices, HIT
Florida
Bioscience, LifeScience,
Medical Devices
Raleigh
Durham, NC
Pharma & Biotech
Research, JVs
San Diego
Biotechnology ,
Mobile Health IT,
Devices, VC
DC, MD
FDA, NIH,I-
270 corridor
”NA Alley”
Atlanta
Bioscience
HIT
Chicago
Life Science
Denver:
Agriculture, Bioscience
Houston
Research
Indianapolis
Life science, implants
Minneapolis
Agriculture,
Medical devices

20. Finpro Gazelle US for Health Science Companies
• A five-stage program, that will take place in Helsinki and US healthcare hubs
• The Bootcamp (4-5.6) facilitator and trainer is Christian Haller
– A trusted advisor and strategist for business executives in the medical technology
and consumer products industries
– Works with executives at start-ups and Fortune 500 companies to conceive, finance,
develop, manufacture and market first of a kind products and new technologies
– A serial internal entrepreneur at MPR, where he has successfully built numerous
new companies
• The program is run by experienced people and gurus from the markets and
industries
• In the US, leading medical experts join the team and work with each company
21/05/2013 20© Finpro
1 2 543
Situation
Analysis
Bootcamp Mentoring
&
Coaching
Discovery Entry
Options

21. Testimonials from Gazelle Bootcamp Graduates 2012
“Absolute must to attend before any business!”
“If thinking of going to the US, do this course!”
“Any start-up should go through this, hands down!”
“It will make you think”
“This session really helps focus your attention on things…”
5/21/2013 21© Finpro

22. Financing options
21/05/2013
22© Finpro
Preliminary Funding
Company Development
Grant
Joint Purchase Training
Tekes R&D Grant Tekes De minimis grant
Tekes Young Innovative
Companies
Go Global Plus
(ELY/Finpro) value17.5 k€,
with approx 75 % support
Finpro Growth Market
Program (TEM/Finpro) value
20 k€ with 50% support
Finnpartnership
Finnvera
Finpro’s programs with funding and financing options
Public financing and funding options

23. Your contacts in Finland:
Eero Toivainen
Senior Consultant
eero.toivainen(a)finpro.fi
Tel +358 40 343 3379
Kimmo Aura
Regional Sales Manager, Americas
kimmo.aura(a)finpro.fi
Tel +358 40 504 8317
5/21/2013 © Finpro 23

24. Your contacts in the US:
Val Kratzman
Head of Trade center
val.kratzman(a)finpro.fi
+358 20 4695 806
Maria Mäkelä
Consultant
maria.makela(a)finpro.fi
+358 20 4695 850
5/21/2013 © Finpro 24

25. Follow us on social
media and visit our
website www.finpro.fi