Hospital Supplies & Services
DCC Healthcare has a market leading position in the sales, marketing and distribution of medical devices into Irish hospitals with an extensive, highly trained field sales force and strong relationships with senior management, clinicians and procurement professionals. The business has a developing position in the medical devices sector in Britain which was significantly enhanced during the year by the acquisition of the Forth Medical Group.
DCC Healthcare sells and markets a broad range of medical devices and consumables in areas such as woundcare, urology, procedure packs, critical care (anaesthesia, endovascular, cardiology, IV access), diagnostics, orthopaedics and neurology. Products are typically single use/consumable in nature. Capital equipment represents a small element of total sales and typically relates to generating sales of consumable products, for example the sale (or placing) of diagnostic testing equipment in order to drive sales of the consumable test kits used in the equipment.
DCC Healthcare sells, markets and distributes innovative and generic pharma products in Ireland and Britain through the hospital, pharmacy and homecare channels. DCC Healthcare's portfolio of pharmaceuticals encompasses a range of therapy areas including oncology, antibiotics, anaesthesia, pain management, haematology, respiratory, addiction and emergency medicine. The business is now developing its product portfolio and sales network in the retail pharmacy channel and this process was accelerated during year through the acquisition of the trade and assets of Neolab Limited, a supplier of generic pharmaceuticals to the British retail pharmacy channel, with its own local market authorisations (product licences). DCC's current modest market share in this channel in both Britain and Ireland provides the business with significant scope for continued growth.
DCC Healthcare also provides outsourced pharma compounding services to hospitals in Ireland, through its licensed compounding facility in Dublin, which is involved in the aseptic filling of oncology, pain management, antibiotic and paediatric nutrition products into patient ready dosage forms i.e. syringes or IV bags. The compounding facility services the national contract for paediatric nutrition in Ireland in partnership with Fresenius Kabi. DCC Healthcare has leveraged its compounding capability to expand its service offering into the provision of pharma homecare services, an underdeveloped area in Ireland. During the year DCC launched a home antibiotics service for cystic fibrosis patients on behalf of one of Dublin's major teaching hospitals.
DCC Healthcare is also a leading provider of value added logistics services in Britain, providing innovative stock management and distribution services to hospitals and healthcare brand owners/manufacturers focused principally on theatre products.
DCC Healthcare operates in the medical device and pharma markets which are primarily government funded. Fiscal budgets in Ireland and Britain have tightened and, in common with the majority of developed economies, the burden of care, particularly to support ageing populations, is growing. As a result healthcare providers are increasing their focus on cost saving opportunities and value for money. Public and private healthcare payers and providers are leveraging procurement scale through increased use of tendering, framework agreements, reference pricing and pharma formularies. They are switching to equivalent quality, lower cost medical and pharma products as well as outsourcing activities deemed to be non-core. DCC Healthcare is well placed to benefit from these trends.
Health & Beauty Solutions
DCC Healthcare is the leading British based outsourced service provider to the health and beauty sector, including operating the only soft gel encapsulation facility in Britain. Its range of outsourced services is focused principally in the areas of nutrition (vitamin and health supplements) and beauty products (skin care and bath and body care). The service offering encompasses contract manufacturing in a wide range of product formats (tablets, soft gel and hard shell capsules, creams and liquids), packing and other services from its three MHRA licensed manufacturing facilities in Britain. The business is building its reputation and market share in continental Europe especially in Benelux and Scandinavia.
Consumer demand for nutrition and beauty products has been robust through the current economic downturn with continued demand for product innovation. The trend for health and beauty brand owners to outsource non-sales and marketing activities (including product development) and to streamline their supply chains is a more important factor in driving demand in the contract manufacturing sector. There is also a trend towards increased regulation and higher manufacturing standards in the health and beauty sector. These trends will favour well funded contract manufacturers like DCC Healthcare which has the resources to invest in regulatory expertise and high quality facilities.