Pestel Analysis Healthcare

INTRODUCTION:

Healthcare Sector in Singapore:

A sound healthcare system is the backbone of any developed economy. Singapore has successfully proved this fact. The healthcare system in Singapore ranked the most efficient system in the world in 2014 by Bloomberg.

There are about 5.5 million people living in Singapore, out of which 3.4 million are citizens of the country whereas the remaining 2.1 million are foreign nationals (out of which 0.5 million are PRs and 1.6 million NPRs). Singapore is quite a cosmopolitan country with people from across the world calling Singapore home. However, with regards to the ethnicities those are most predominant are Chinese Singaporeans consisting of about 74% of the population, followed by Malays – 13% and Indians

The total revenue earned from the medical products division comprises of two segments, namely – hospital products and Renal. The contribution of the segments to the total revenue along with the region-wise breakdown of revenues for the medical products division is given below. (SeekingAlpha) Source: Seekingalpha

As discussed earlier, the growth over the years has also translated into significant amount of returns for the shareholders. Baxter has always remained committed to all its stakeholders – shareholders, employees, customers, distributors, government agencies, society, etc. The overall performance of the company as perceived by the capital markets over the years is depicted below. Source: Seekingalpha

It can be clearly seen that the company’s performance has been positively recognised over the years by the capital markets. Key parameters such as the share price, Earnings Per Share (EPS), dividend amount indicate that the company has performed constantly over the years and has yielded economic

Since Baxter has significant interests in the renal segment in the healthcare sector, the acquisition of Gambro has enabled Baxter to enhance its leadership position in the renal space. With this consolidation, Baxter can not only gain on significantly from HD but can also tap Gambro’s markets to promote its products such as the Peritoneal Dialysis (PD) equipments. Baxter will now be in a position to enhance its product portfolio of home dialysis and peritoneal dialysis systems by adding Gambro dialyzers, highly innovative next-generation monitors, and acute therapies to treat serious kidney, liver, and lung conditions.