VRG Technologies, Inc.

MEDICAL DIAGNOSTIC KIT MARKET EXPECTED TO GROW 7% BY 2002

Medical diagnostic kits (MDKs) are analytical test kits packaged for use on a single test basis. This market is comprised of a diverse group of end users, ranging from sophisticated researchers and clinical laboratory and veterinarians to individuals performing self-testing on a home-use basis. It is the expansion of the home-use and veterinary segments, complemented by expanded use by researchers that has fueled this market growth. Clinical laboratory use has diminished as more automated instruments have taken hold. The fact that MDKs are easy to use, portable, provide fast and easy-to-read results and require no expensive information provides the major advantage of using these tests over other methods.

According to a soon-to-be-released Business Communications Company, Inc. study, C-045U: Medical Diagnostic Kits and Products, the total market for medical diagnostic kits is currently $3.1 billion and is expected to increase to $4.3 billion in 2002, representing an average annual growth rate (AAGR) of 7%.

BCC points out that clinical laboratories are currently at $1.4 billion and will increase to $1.6 billion by 2002. This will create an AAGR of 4%.

The home-use MDK segment has expanded as a result of the availability of new tests and the expanded use of established tests as the U.S. population continues their trend of self-medication and taking control of their health. New tests introduced into the home-use segment include cholesterol, occult blood, HIV and drugs of abuse testing. During 1997 the home-use market is valued at $823 million and is expected to have the most growth. In 2002 the market will rise to $1.2 billion, creating an AAGR of 8%.

In the research market sector, medical diagnostic kits are also expected to do well. In 1997, the market is at $490 million and will increase to $789 million, creating the highest AAGR of 10%.

BCC concludes that veterinary testing continues to expand for both the U.S. pet and commercial animal population. The market sector is currently at $422 million and will grow to $637 million by 2002, producing an AAGR of 9%. The MDK market is technology driven, but external factors have an impact, particularly government regulations and cost containment efforts.

Source:BCC, Inc.