The medical division develops, produces, and markets system solutions, equipment and services for the acute point of care (APOC) process chain. These include emergency care, perioperative care (in connection with the operation), critical care and perinatal care (in connection with childbirth). The portfolio comprises products for therapy, monitoring information management and process support. Dräger is one of the global market leaders with its products for ventilation, anesthetics, ongoing surveillance of vital signs as well as their accessories and consumables. In recent years, Dräger considerably improved its market position as a system provider with products such as integrated IT solutions for the operating room and gas management systems.

Of the 6,386 people employed by the division worldwide (December 31, 2010), 54 percent work in Sales, Marketing and Service, 26 percent in Production, Quality Assurance, Logistics and Purchasing, 11 percent in Research & Development, and 9 percent in Administration.

The medical division has development centers and production plants in Germany (Lübeck), the Czech Republic (Policka), the US (Andover and Telford), and China (Shanghai).

The division is represented in around 190 countries on all continents and has sales and service subsidiaries in over 40 countries.

Medical technology markets around the world were impacted by at times strong catch-up effects after the crisis year 2009. The market in Germany and other parts of Europe recovered considerably. In South Europe, on the other hand, governments’ efforts to consolidate their budgets made developments stagnate and many European governments cut their healthcare budgets. In the US, demand developed slowly in the first half of 2010, then rose again to levels last seen in 2008. In the Asian and South American emerging markets, strong population growth made it necessary to invest in their healthcare infrastructures. As the GDP of these countries is increasing significantly, they are increasingly able to meet this need for investment themselves. Especially in China, the medical technology market continued growing strongly. Customers’ main investment criterion around the world is increasing the efficiency of processes to remain competitive. The growing demand for all-in-one system solutions led to further consolidations on the supply side.

Countries in the EU have implemented consolidation programs in the wake of the economic crisis. Among other things, these programs also aim at enhanced efficiency in hospital operations. This results in rising demand for systems and services. Dräger is favorably positioned in this market segment compared to the competition. The market trend already observed in Germany over the last few years is expected to continue in 2011. The EU is also subsidizing the regional expansion of healthcare systems with programs such as the European Regional Development Fund, which has earmarked EUR 5 billion for investments in the healthcare infrastructure during the period from 2007 to 2013. In contrast to the overall trend, South Europe, which is still struggling with the effects of the financial crisis, is expected to record rather little growth.

Healthcare reforms in the US, the world’s largest sales market for the medical division, are not expected to affect Dräger since the program mainly focuses on improving basic medical care of Americans who are currently uninsured and is therefore typically outside the hospital market.

According to the German professional association Spectaris and the German Healthcare Export Group, the medical division can expect the positive trend in demand from the emerging and developing countries to continue. This is based on investment programs focusing on the respective healthcare systems. For example, Latin America is focusing on growth in many parts of the healthcare sector so that sales opportunities are expected to be favorable. Positive developments are also anticipated in other developing countries.

The positive trend in Asia is likely to continue as well. Analysts are convinced that the trend in China will be sustained over the long term and expect the healthcare sector to grow by 20 percent annually. However, some of these investments are earmarked for the development of basic medical care which is frequently inaccessible to imported products. Forecasts for the Middle East and North Africa cannot be made at this time based on current political events. However, a slump in demand appears highly likely until new power structures have become established.

From an overall perspective, competition in the medical technology market is expected to remain high. Nevertheless, Dräger expects developments for the medical division to be positive in 2011.