Switzerland Medical Devices Report Q2 2016

Switzerland Medical Devices Report Q2 2016

BMI View: We expect the Swiss medical device market to contract by 2.5% in US dollar terms in 2016,compared with growth of 4.9% in local currency terms, due to the continued depreciation of the localcurrency against the US dollar. The market will benefit from an improved economic performance in 2016,as well as accelerating growth in Switzerland's main eurozone trading partners. The country's favourabletax rates, high demand for sophisticated products from healthcare providers, and continued investment inmedtech start-ups, will help the medical technology sector to grow over the next few years.Latest Updates and Key Forecasts

We forecast that the market will register a 2014-2019 CAGR of 3.9% in local currency terms, but marketgrowth will be weaker in US dollar terms due to the projected depreciation of the Swiss franc against thedollar. We expect the market to increase from USD3,688.6mn in 2014 to USD4,083.9mn in 2019.

We anticipate that import performance will improve in 2016, given the economic recovery that is set toextend into 2017. Depreciation of the Swiss franc will keep growth rates weak in US dollar terms,however. In the 12 months to December 2015, imports fell by 3.0% to USD4.4bn.

We believe that export performance will strengthen throughout 2016 in US dollar terms, due toaccelerating growth in Switzerland's main eurozone trading partners, and stable growth in otherdeveloped market trading partners. In the 12 months to December 2015, exports fell by 4.7% toUSD10.6bn.

In March 2016, Endeavour Vision, a Swiss venture capital company that focuses on emerging medtechand digital health companies, announced that it had established the largest medtech fund in Europe andone of the largest pure medtech funds in the world. Funding worth EUR250mn (USD269mn) has beenraised for the Endeavour Medtech Growth LP (EMG) fund.