MedCap operates within a number of growing niches in the areas of aids, medical equipment and logistics / production.
Technical aids
In the technical assistance industry, you have leading positions in the Nordic countries as well as in the European market within their niches. The products can be divided into four main areas; Communication, cognition, alarm and environment control. In total, the corresponding part of the European market amounts to approximately SEK 1 billion. MedCap’s operations are mainly in the Swedish, Norwegian and British markets.
The major customers in Scandinavia are county councils, municipalities and other auxiliary companies that use medical technology solutions. The competitors consist mainly of Tobii, Smartbox and Picomed.
Medical equipment
In the medical equipment market, MedCap is active in ECG equipment and related activities. The global market for ECG equipment is expected to be stable and amount to approximately SEK 40 billion per year. However, MedCap is primarily active in the Swedish market and, to a lesser extent, in parts of Europe.
The market for ECG equipment is competitive with some major global players and smaller national companies, all of which compete with products of simpler nature. The main competitors within ECG equipment are GE Healthcare, Mortara, Philips Healthcare and Schiller.
Logistics / Production
MedCap’s logistics / production business today consists of solutions for temperature sensitive drug distribution and packaging solutions for pharmaceuticals and dietary products.
The market for passive refrigeration solutions in the Nordic region is dominated by local players. However, there are a number of European companies offering solutions in the region. The market for packaging solutions also consists primarily of local players. However, the products being packaged are distributed globally. In niche markets there is a certain price focus, but quality and competence are valued.
Specialty Pharma
Specialty Pharma develops and sells pharmaceuticals within the regulatory classes of registered, extempore and licensed medicines and the customers are found primarily in the pharmacy and pharmaceutical industry.
The pharmaceutical market globally accounts for approximately SEK 6,000 billion. The United States dominates the world market with more than 40 percent of pharmaceutical production in the world, while Europe represents just under 30 percent. MedCap is mainly active in the Swedish pharmaceutical market, which in 2016 had a turnover of SEK 42.6 billion.
There are just over 12,000 approved medicines in Sweden. In Sweden, 99 million pharmaceutical packaging was prescribed in 2015. Approximately 90 percent of these packages were prescribed within the benefit.
The drug benefit is a system that provides protection against high costs when purchasing medicines. In order for a drug to be included in the benefit, pharmaceutical companies must apply from the Dental and Medical Services Agency, TLV, and be able to demonstrate that the drug is cost effective. TLV decides which medicines and other products may be included in the pharmaceutical benefit and at what price.
Pharmacy for end-care, so-called prodrugs, is procured by county councils. Prescription drugs account for approximately 18 percent of the total market.
Beneficiary drugs accounted for approximately 63 percent of the total market in 2014 and sales of SEK 23.6 billion. Of this part, the patient accounted for approximately SEK 5.6 billion. The remainder is financed by the county council which receives government grants for this purpose.
For prescription drugs, free pricing applies. Costs are not included in the patient’s high-cost protection. The patient pays either the full cost himself or, in some cases, the county council is responsible for the cost. This portion accounts for approximately 8 percent of the total market.
Non-prescription drugs sold in pharmacies and retail are funded by the patient. These drugs account for approximately 11 percent of the total market.
