What we now know…

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Africa and AMI:
Fist noted in the 11/09 issue of the PHM Emerging Markets Healthcare Monitor, African Medical Investments (AMI) has had a troubled tenure. And we’ve continued to highlight AMI’s strategic and tactical moves:

Leadership gone awry; aircraft outfitted as an ambulance; and board members from a singular (non-healthcare) sector.

Gone are both the aircraft and chairman. See Africa Watch, page 10.

 

M&A
Emerging market countries made $128 bln in overseas acquisition in 2011. Malaysia’s KPJ ready to participate, see page 7.

 

CEE
Finland and the Netherlands recently opposed a deployment of euro zone bailout funds to lower borrowing costs for Italy and Spain.

The Spanish central government has lent 35 billion euros to local governments to pay back logs of bills, including healthcare.

GE Healthcare has increased bill collecting staff for southern and eastern European countries to combat the “hundreds of millions of euros in receivables.” 600 day repayments not unusual.

 

India
1.5 million cars are added each month to India’s roads.

Petrol in particular, and energy in general, to become growing issue, impacting growth.

As noted in News Feed of July 2, 2012, Fortis Hospital Malar (Chennai) is in the process of buying part of an energy firm. “…Fortis Malar had decided to buy into a power firm because it was mandatory in Tamil Nadu that any consumer who wants to purchase power under a group captive arrangement should have some take in the power generator.”

This is a potential distraction for Fortis and other healthcare companies.

Egypt
In a surprise recording, Egypt has ranked the second best performing market for the first half of 2012. Venezuela’s place in first is equally surprising. (See chart on right.
Source: AlifArabia.com)

South Africa
40% of the population (48.8 million) lives under the poverty line of $49. per month.

Median age is 25 and youth unemployment is 50%+.

These data are but one indication of why South African health care companies are diversifying geographically.

 

Poland
Polish pharmaceutical firm Prosper, a unit of Neuca, is projected to fire up to 742 workers through October of this year.

At the same time, competitor Pelion will lay off some 300 employees by end-year.

Back in mid-2011 we noted currency exchange rates would begin to pressure Poland’s healthcare market, particularly consumer paid. These pressures were also noted in our Q3 2011 Video Update. However, regulatory changes also have pressured the sector.

 

Poland
Poland’s unemployment rate may hit 13% at the end of 2012 without government intervention.

More pressure on Poland’s healthcare sector.

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On July 20, 2012
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