Hello, everybody, and welcome to the 1st Capital Markets Day breakout session. It's a great pleasure to be here with you today. My name is Paul Mark, and I'm the Executive Vice President for Growth. Last week, I presented at the Capital Markets Day. And for those of you who did not participate, I presented a strategy centered around innovation and with an emphasis on the U.
S. And on China. Today, we're going to go global, and I have invited 2 Senior Vice Presidents, Howard Sway, our Senior Vice President for Asia and Manu Varma, our Senior Vice President for North America to present their STRIVE 25 strategies. At the end of the presentations, there will be time for Q and A. Please be aware that there will be a slight delay on the webcast versus the phone calls and the audio you may hear.
And without further ado, I'd like to hand over to Howard, who's based in our Beijing office in China. And Howard, please go ahead.
All right. Thank you, Paul. Good evening, everyone, and greetings from Beijing. I have been in this company for 13 years, and I'm the Senior Vice President for Asia. So over the next 10 minutes, I will share with you an overview of the STRIDE 25 strategy for our business for our chronic care business in China.
And maybe you have noted that the title of my presentation shows that our starting point is actually quite a good place as we enter this STRIDE 25 period. We are the market leader in our space and we will definitely leverage this market leading position to further build our business in China. Now, when you look at the chronic care business in China, clearly it's a healthy growing business. Today, we are a top 3 growth contributor for the chronic care business in Coloplast. And we have roughly 5% of the group sales in the chronic space in China.
And we also have quite a strong organization numbering more than 500 in China. Now as you can also see, the vast majority of our business today is in Ostomy Care, where we do have a very strong market position with roughly 60% market share. And that we are operating in a very healthy state where the overall osmicare market is growing at 15%. And this is certainly supported by the very positive macro trends and demographics for our business such as the faster aging population, the urbanization that's still ongoing, the very rapidly growing affluent population and the increase in the prevalence rate of chronic illnesses in China. Now China is one of the key things in the STRIDE 25 strategies for our chronic care business And I think for very good reasons, China is already the world's 2nd largest medtech market and it's one of the fastest growing.
We also know that in the past decade, China has contributed greatly to the global GDP growth, roughly 1 third of the world's GDP growth has come from China. And of course, in 2020, I think China will be the only major market that will still have a positive GDP growth. And most prognosticators do believe that once the pandemic settles for the strategy period, the global GDP growth contribution from China will return to roughly the 1 third level as in the previous decade. Another very important aspect of the Chinese market is the digitalization that's happening here and how fast the e commerce market has advanced. And this is particularly important for China as for the med tech space.
Once a patient leaves the hospital, the reimbursement today is not very good. So a lot of the purchase is out of pocket. So making patients in China more behaving more like consumers than patients. So the e commerce market today in China is the world's largest and in fact it's already bigger than the rest of the world combined and also growing at a very fast rate. So for us, over the next 5 years, clearly, OsmoCare is our biggest and most important business and will remain our core business.
So we aim to continue the growth momentum that we have now in China and that we continue to expect Ask Me Care to be the biggest growth driver for our business. In addition to that, we do expect to be able to develop a sizable IC business during the Strike 25 period and we will do this by creating a dedicated business unit to further advance our market development work and the size of the business. Now in addition to that, we have established a very strong and sizable consumer business today, but that importance will become even more over the next 5 years. So we need to continue to expand and evolve our business in this space. So in Ostomy Care, today we have by far the largest sales force in China with very strong coverage.
In fact, we have staff based out of more than 130 cities in China. Of course, all of these cities are with populations that are more than 1,000,000. And we have sales to nearly 300 cities in China. So the coverage of our Osmium Care business is actually quite strong in the hospital side. And our products are also very much preferred by clinicians as evidenced by the fact that the majority of MPDs are placed on Coloplast products when they are discharged from the hospital.
We also enjoy a very strong relationship, a trusted relationship with our clinicians in China through our many years of strong efforts in working together on improving the standard of care through education for clinicians and also through our joint efforts in conducting patient education. And many of these education programs is also done online, so that we have also now established a very strong position in the digital world, both in terms of sales and e commerce channels, but also in the types of education and other services that we offer online. Now going forward, we expect that we will be able to sustain a very healthy growth rate in Austin Care in China, primarily for these reasons. 1st, one of the key drivers for our growth is coming from the continuous improvement in the change frequency that patients are doing in China. So over the past 5 years, we have more than doubled the number of products that patients use in a month from roughly 5 to 6 bags per month to now over 12 a month.
Now when you compare that to the current European level of basically 30 bags a month, then that shows you that there's still a lot more room to grow in this area. And patients and clinicians all starting to recognize that the right change frequency can significantly improve the quality of life, the quality of the skin and also reduce the worry that most patients have on leakage. So this is something that we will continue to drive through our education efforts. Another growth area is on furthering our NPD shift. So today, we are covering the vast majority of NPD or surgeries in China, but there's still a bit more for us to go for and this is something that we will plan to deliver over this STRIDE 25 period.
In addition to this, this year we have launched our SenSura meal and the product was introduced about 5 months ago and it is off to a very good start. So this has now further broadened our portfolio. We are currently today roughly half of our patients start their ostomy care journey with SenSura and the other half with Alterna. And with the introduction of SenSura Mio, we expect that we will continue to be able to move patients up the value chain into more and more premium products. And another area that has really offered us a lot of strong growth over the past few years is in our osmacare supporting products.
Patients are starting to really recognize the benefits supporting products can bring to them in addressing specific issues that they have and with additional education efforts planned, we expect the supporting products contribution to our growth to be something that will sustain our performance going forward. Now the IC category today is very, you can say potentially large, but it's still very underdeveloped. And we aim to create a sizable business by focusing our efforts on a selected number of high potential studies. And the segment that we will focus on will be the spinal cord injured, SCI patients. Now in China, the reported number of SCI is in the range of 1,000,000 to 2,000,000 with an additional 60,000 to 70,000 new patients each year.
So in terms of potential, it is a huge opportunity. At the same time, we also recognize that the IC, the use of IC by clinicians or by patients recommended by clinicians is still very low. Most reports indicate that less than 10% of spinal cord injured patients in China today are using IC as their preferred means of emptying the bladder. So we aim to in the short term focus on the out of pocket market because reimbursement is also something that requires additional efforts to achieve. So in the near term, we will focus our efforts on a selected number of cities focusing on the largest hospitals, working together with the clinicians and the patients to help them understand the benefits of using IC for bladder management.
And then together, we believe we can also over time convince the government on the needs of this patient group and then gain some reimbursement support. And finally, as I mentioned earlier, the patients in China because of the reimbursement situation behave more or less like consumers. And with the largest e commerce world already in China that has basically penetrated about 25% of all retail sales, we do see that on the healthcare side, specifically in Ostomy Care, the penetration of e commerce is even farther than the general retail sector with about 30% of all ostomy sales today already online. And we expect this to further increase over the next 5 years to roughly half of all Osmacare sales in China. And today, we do enjoy a very healthy position online.
We are present in all the major e commerce platforms from Tmall to Taobao to jd.com and WeShop. And we have a very strong market share position as roughly 70% today. And this is definitely something that we plan to further leverage to help grow our business over the next 5 years. So clearly, our ambition for China's chronic care business is to continue to outgrow the market and continue to deliver strong profitable growth. So this concludes my 10 minute presentation.
Operator, I'm ready to take questions from the audience.
And our first question comes from the line of Veronika Dubajova of Goldman Sachs. Please go ahead. Your line is now open.
Good afternoon and thank you for hosting this call. Really interesting and Howard, thanks for all your insights into the market. I'd love to ask a couple of questions on the Continence Care side and the size of the IC opportunity that you see. One, kind of what your ambition is in terms of market share, if you can talk to what you think is realistic and maybe touch upon the competitive landscape of the key players in that segment today and who are you competing against? And then my second question is pricing and product type in IC in China.
How do you see both of those? And when you do think about this out of pocket market, is this mostly hydrophilic or not? And the type of products that you're expecting to sell there, that would be really helpful. Thank you.
Thank you, Veronica, for your question. There isn't a lot of data in China. What we do know is that there is a very large patient population, as I mentioned before, 1,000,000 to 2,000,000. And if you consider roughly half of these patients will be eligible for IC, then that will give us a potential population of users of half to 1,000,000. Now today, the IC penetration is below 10%.
So roughly 50,000 to 100,000 patients are using IC today in China. And so if you use these types of numbers to project out the current market size, it is not very large. It is a few 100,000,000 CNY local currency. And right now, the market share that we have is not it's just a starting point. The majority of the products in China that are being used is the very low price uncoated catalyst made by local manufacturers.
So the goal for our company is to really build the IC category, help clinicians and patients understand for their, let's say, longevity, it is important that they recognize the importance of group bladder management. So the first thing we want to focus on is really to build the IC category to improve the standard of care. Now the products that we offer are hydrophilic in China. And we are active today with both business in the hospital and also a direct to consumer business through our subscription program. And the reason why we have launched this subscription program is to basically take out the middlemen so that we can help patients afford to use products.
And we have learned quite a bit over the years from the work that we have done to the point where we now believe it's time to set up a business unit to basically put more resources in this effort. So I hope that answers your question. Operator, I'm ready for the next question.
Thank you.
Thank you. Our next question comes from the line of Oliver Metzger of Commerzbank. Please go ahead. Your line is now open.
Yes. Hi. Thanks a lot for taking my questions. My first one is quite general one on whether you can comment on volume versus price development in China. That would be quite interesting.
And the second question is also on your product portfolio. So on the slides were already some legacy products. So could you disclose which share of products is still coming from your legacy portfolio? And to which extent you can also use the newer technologies like the SenSura Mio?
On the first question, certainly with still an increasing number of surgeries on the OsmoCare side in China, lowtomidsingledigitgrowth each year. So there are more patients coming into the pool and by winning more share, for sure, part of our growth is being driven by volume growth. On the pricing pressure side, certainly, I think all of us have heard about the volume based procurement that's happening on the pharma side and also now starting to happen on the premium price, the consumables on the med tech side. But we have, let's say, been quite lucky that we haven't been exposed to the volume based procurement efforts. So our pricing has held steadily in China at this point.
And your second question on the portfolio, yes, we do have a few legacy products in China, Alterna being one of them. And we launched Sensura about 5, 6 years ago. And in China, after a product get received regulatory approval, we still need to make quite a bit of effort to get the products listed individually into hospitals for us to be able to really make the products available to patients and that does take time. So it took us this many years to reach today's point where half of our new patients are starting their journey with Sensura and then the other half are still on Alterna. And with the introduction of Mio this year, we expect that more and more patients will migrate to the Mio portfolio.
And then over time, this would also receive a significant share of patients and we think this will cannibalize the alternative patient population. But we do expect over time that the portfolio will move, you can say, upwards to the premium brand. But we do offer a broad portfolio so that we can service all the different segments in China. Operator, I'm ready for the next question.
Thank you. Our next question comes from the line of Scott Bardo of Berenberg. Please go ahead. Your line is now open.
Yes. Thank you very much for taking my questions. So first question, please. I wonder if you could talk a little bit about Ostomy Care in China. I note in your slides you suggested around 20% of the market comes from more local regional players, which seems very low in the context of some of the efforts the Chinese authorities are making to stimulate domestic production and to fuel more local competition.
So is there any noticeable moves or players from a local perspective that it is worth keeping a watch on or making some strong advances in this area? It would be interesting to understand that, please. And the second question relates to your Coloplast Care program where I appreciate you've made extensive investments. Can you confirm how many players in China have similar type care offerings? And when if you're successful in migrating more sales towards online channels, does this devalue in any way a broader care offering and increased competition?
Or is it the opposite is true? Thank you.
Thank you for your question. In terms of competition, that certainly has increased over the last 3 years when China decided to lower the classification of Ostomy Care products from Class 2 to Class 1. So the regulatory hurdle was lowered. Therefore, over the past 3 years, more than 2 dozen local brands have entered the market. They are all, you can say, similar in that they are all aiming for the low end of the market.
So basically trying to differentiate only on price. And they're not really making any efforts to introduce their products with their own sales force, the hospital sector. So it's more or less just making the products available. So at this point, none of the local competitors have scale. So combined, they have about 20% of the share of the market, but this involves more than 30 players.
So no real, you can say serious threat at this point from local competition. In terms of our CARE program and similar programs offered by competitors, there's only one that we do note and that is from Comitex. And I think they are a latecomer. So we do believe that we still have the great majority of the patients in China. And the migration online or maybe I should say the digitalization that's being done in China now actually offers us, you can say, more means to service our customers because now education can be automated, can be done via channel that's the most convenient for our users.
We can also automate our service so that we can have more frequent contact with our customers. And I think the digitalization effort has also helped us in terms of our retention efforts with our customers. So it has been, I think, a quite a nice development that these new tools are now available to us to help us better service our customers. Operator, I will now take my final question.
Thank you. I remind you that analysts are allowed to ask questions today. Our final question for this session comes from the line of Veronika Dubajova of Goldman Sachs. Please go ahead. Your line is now open.
Thank you for squeezing me in for a follow-up. Howard, I just wanted to get your thoughts on sort of the size of the organization and your ambition to grow the sort of number of feet on the street that you have. This has historically been a big focus for the company and I think there was a little bit of pause and consolidation on that over the last couple of years. How are you thinking about the next 2 to 4 years? When you think about those 500 folks that you have, what's that number looking like in 2, 4 years from now?
And I guess, incrementally, sounds like more of that goes towards the IC business than the OC business. Is that a fair assumption or not?
I think for certain, we will be expanding organization for the IC business and to a lesser degree compared to the previous ramp up in the OC business. Now as you can imagine, as you move into the last, let's say, pieces of the market that we are currently not covering, for efficiency reasons, we will have to use a less traditional means of reaching all these customers. So some type of a hybrid model where we will be visiting customers not exclusively in person, but also a combination of in person versus a plus supplementation with the online visits. So I think at this point, because of our coverage of the ostomy surgery, it's already quite extensive. So the requirement to expand compared to the previous phases will be smaller.
But the IC opportunity, I think, is one where we will focus our efforts. So I think your view is something like I can confirm. Yes.
That's great.
Thank you. Thank
you, everyone, for your interest. Thank you, audience, for listening in on the session and asking all your questions. This does conclude the China session. So I will now hand this back to Paul. Paul?
Very good. Thank you very much, Howard, for Beijing, and thank you to all the participants for very interesting questions. And again, just to reiterate the message from last week as well, we will continue to invest in China to build on our market leading position. What I'd like to do now is hand over to Manu Varma, who is our Senior Vice President for our North American business. Manu is based in Minneapolis and will be streaming live now.
So over to you, Manu.
Thank you, Paul, and hello, everyone. Great to be here to share our new 5 year strategy for the U. S. Market. As you know, among all coloblast regions, U.
S. Is a bit of an odd duck. We don't have the highest market share in ostomy and our continent's market is still not fully developed. Too many users are using uncoated catheters. It should then be no surprise that we see ourselves as the challenger in the market.
We are challenging competitors in Ostomy, but we are also challenging stethoscope in our business areas to become leaders in our categories during this strategy period. Actually, it looks like we didn't move the slides, so apologies. So that's why the tagline for our strategy for the next 5 year period is challenger to leader. Looking at the picture of the business, this isn't materially different from what you've seen before. We have a bigger Continence Care business than Ostomy Care business.
We continue to grow 2x, 3x the market rate in both of those business areas. And we have approximately 30% share in Continence and in Ostomy, we are in the mid teens. And in both, because we are growing faster than market, we are gaining share. So what's our strategy for the next 5 year period? Looking ahead, it's all about sustainable growth leadership.
We could not be more excited about the innovation pipeline that you all got to see last week. Those innovations will definitely put Coloblast substantially ahead of competition in our categories. The commercial strategy, however, expects those innovations to arrive during the course of the 5 years and it builds on top of that through commercial tactics that go after the substantial runway that we have in our market. So let's look at it by business area. Starting with Continence Care, we look forward to bringing not just those groundbreaking innovations, but also some smaller innovations to market during this 5 year period and continuing to upgrade the market to hydrophilics.
In Ostomy Care, we will expand our offering just like we have over the last strategy period and we will deploy commercial strategies to ensure that we win along the patient pathway, starting with hospitals into post acute care and in the community. Our direct business, Comfort Medical, has made solid progress over the last couple of years and is growing well. We want to make it the go to dealer for users in the U. S. Market.
And ultimately, this is the rich agenda of a lot of business activities that have to happen over the course of next 5 years and doing this well will require us to execute with excellence. And so commercial execution will be a super important element in the strategy and we will be working with providers to build clinical standard of care. We will be bringing more digital offering and solutions to market and continue to grow and strengthen our organization. Looking at this by business area, in Ostomy Care, we have over the last strategy period gained more than 6 points in market share. And this has happened because of the terrific innovations we've brought to market in the past strategy period.
When you look at Centura Mio, we have flat barriers like everybody else, but we have more types of convexity barriers than anybody else, and we have the only concave product in the market. And this excellence of innovation on the barriers and pouches side exists on the accessories side too. And both of those BNP and accessories have grown handsomely for us in the past strategy period. Looking ahead, as I mentioned, we are going to deploy tactics to win along the patient pathway and ensure that we take share at every level. Taking a double click into the acute segment, which I know you guys are keen on hearing more about.
You've heard from me in the past about some of our marquee wins, Bon Secours Mercy Health is one of the largest IDNs in the U. S. That we won last year. Last fall, we also won a contract position with Ascension, which is one of the largest hospital chains in the U. S.
You've heard about Kindred and Encompass Health. We won their home health business last year. Since then, we have also expanded to their rehab facilities, the long term acute care hospitals. And I'm very pleased and proud to share that we are now the 2nd largest player in the acute channel. In the last market NPD data that we saw, we had become number 2 in NPDs in the U.
S. This is great and we are obviously happy and pleased about this. But now our eyes are set on number 1. It will be a lot of work and a long road, but we are on the attack and we intend to get there eventually. Now an important part of making this happen is having contract positions with GPOs.
And you know we won a position with Premier last year. We are actively working on the Vizient opportunity right now. We expect Vizient to make a decision sometime close to spring of next year about who all they will give an award position for Ostomy. So that's going to be exciting and we're looking forward to that. And HealthTrust happens in a couple of years from now.
We did not win a position with HealthTrust this summer, but we expected that that was possible. And certainly, the situation in the U. S. Market with the pandemic did not help us as we believe HealthTrust saw it tricky to switch manufacturers during the pandemic. But we're doing very well with Premier.
We have a very strong pipeline. Certainly, the pandemic has slowed it down a little bit in terms of implementation, but we are continuing to make progress there. Moving on to look at Continence Care, similar story, we have gained substantial share and we have upgraded the market. That's how nearly 60% of our business now is in hydrophilics. This has happened again because of the innovations we've brought to market.
SpeediCath and SpeediCath Flex Scooter Pro have been very successful in the U. S. Market. As I mentioned earlier, we have brought in a new innovation to this space recently. We launched SteadicapSoft in the U.
S. Market last month during the pandemic. Last year, we also expanded our sales team, so we have a very strong footprint in the market. Now, just a quick double click into SpeediCath Soft. This is our newest member of the SpeediCath family And it's a soft catheter.
It comes with a gripper and it is going to fit in the A4351 reimbursement category, which is about 40% of the market, but actually represents nearly 70% of the volume. And this is going to be a very important launch for us. It's a little early for us to see the full impact for it. But the reason why it's really important is that you guys know we've talked about hydrophilic upgrade of the U. S.
Market for a long time. We were looking at this couple of years ago, one of the things that we saw was that a number of users on IC are trained on a technique that is unique. It's a pinch and inch technique. The user pinches the catheter, inches it in and just repeats that process until they have catheterized. And when you look at our existing 5.1 products Pedicat straight, which has been tremendously successful, its technique is different.
And that technique is more hygienic because the user does not have to touch the catheter anywhere along its path where it enters the body. So, the reason why Speedy Cat Soft is so important is that with having SpeediCath Straight and SpeediCath Soft, we can now cater to all types of techniques used in the U. S. Market. And this should help us continue the journey of our hydrophilic upgrade in the U.
S. Market and continue to grow our Continence Care business in the years to come. Looking ahead to our direct business, we have been executing our growth plan for Comfort Medical for the last couple of years and it's growing nicely. We're very happy with the performance that we've seen there this year. It's going to be all about driving new patient demand at Comfort in this strategy period and improving the retention of the patients that we already have.
We also recognize that Comfort has when we acquired it, it had very little coverage outside Medicare and we have expanded that, but we still have a good runway of commercial insurance plans, managed care plans that we want to expand our coverage to and that's going to be worked for us in the coming strategy period. Now looking at that commercially is one part, but our strategy is really about taking comfort to the next level in terms of being the go to dealer for U. S. Patients. And there, I think we look at 2 important tactics that we are or strategies we're going to look at.
1 is strengthening our digital offering for a superior customer experience. You can see in the App Store or Android, we do have a Comfort app now. Right now, it caters primarily to existing users who just want to reorder what they currently use. We expect that during the course of the strategy period, we would expand that functionality and make it more of a full service offering and that should put it well ahead of competition. We're also going to focus on improving the service levels that are provided at Comfort.
And for instance, when a user calls and we shouldn't just be taking orders, but we should also be listening to them and helping them deal with the condition that they have. And I think when we do that, we will really make Comfort different and unique in a market which tends to be fairly transactional and not very customer friendly. Looking ahead on the commercial execution side, you've heard from me in the past that we were investing in medical affairs, medical marketing. We're expecting to see the impact of that happen during this strategy period. We are going to work with clinicians to set the standard of care.
We believe it's super important. We need to bring innovation to market, but we also need to make sure that clinicians who are thinking of guidelines and standards of care are fully bought in and understand those innovations. As I mentioned in the case of Comfort, we do have plans to expand our digital solution and offerings to empower end users. And this is certainly even more important in this post COVID environment where so much of business has moved to the digital front. And then finally, ultimately nothing can be done without a strong organization.
We are super proud of what we've accomplished in the U. S. Over the last several years. We have a very strong team. Very recently this summer, we were recognized as a top employer by Minneapolis, Minnesota based organization that evaluates local employers.
That's the first time that we've showed up in that list. And we're just going to work very hard to make sure that we have the best organization and culture through talent development and an emphasis on inclusion and diversity in the coming strategy period as well. All of this leads me to our ambition for this strategy period. We will be going from challenger to leader and our goal is to have sustainable growth leadership and deliver that at a rate of double digits in the entire strategy period. With that, operator, I am ready for questions.
Thank Our first question comes from the line of Janik Denhould of ABG. Please go ahead. Your line is now open.
Hi, Manu. It's Janik here from ABG. And thank you very much for your insights on this. Just to pick off, you started by saying that you can say the new generation of products that innovation is key in the U. S.
For growth. Can you just give your perspective on obviously, the new platforms are not just around the corner, they're a few years out. So how important do you see these for it's probably just this strategy period, but probably even beyond? And how do you see this and in terms of the importance towards your negotiations with the GPOs in particular? Thanks.
Yes. So, great question. I think innovation is I mean this is a medical device company. In our categories or any other categories for medical device companies, right, innovation is what drives growth. We continuously move standards of care higher and so on, right.
So we definitely see the quality of those ideas and where the new pipeline takes us, and it is meaningfully different. One of the things that I believe we deal with on a consistent basis as a company is this general perception that supplies or consumables, well, aren't they getting commoditized? But I think this innovation proves that we are not getting commoditized. We can do material changes to the kind of technologies being used by our end users and really improve standard of care. So that's really a long term thing.
However, we expect that those innovations will launch in this 5 year strategy period. I do not expect each of them to be very, very material during the next 5 year period. We believe we can get to our growth rate through the products that we have and the incremental innovations also that we're bringing to market. So that's how I see the innovation playing a role in the next 5 year period. Now coming back to the conversations with GPOs, there's certainly a brand conversation, right?
We are a newer player in the U. S. Market. A couple of years ago when we started talking to some of the GPOs, one of the biggest misconceptions that we had to deal with was that people tended to think of us as a European company or a niche company in Europe. And by bringing some of these stories out, by talking about these things, we do differentiate our brand.
That said, none of the major innovations the clinical performance program talks about are necessarily on the RFPs that we get from the GPOs. We're not at a position where we are pricing them or having that kind of discussion. So I think it does get a halo effect on the brand, which can help us. But it's not part of, if you will, the nitty gritty of the GPO contracting process.
Okay. Thank you. May I just quickly follow-up and then I'll jump back in line. What are you most excited about when you look at the clinical performance program and the new products? So is it the digital solution also given you can say the way that the world moves digitally?
Or is it the next platforms, whether it be in catheters or ostomy bags?
Gosh, I mean, that's like asking you to choose a favorite child. I think they're all very exciting. It's broad, it's deep, it's meaningful. And that level of quality and innovation is what excites me most.
Thank
you. Next question please.
Thank you. Our next question comes from the line of Annette Lueger of Handelsbanken. Please go ahead. Your line is now open.
Thank you so much for taking my question. I mean comparing to what is in the market already in the U. S, it is my impression like in Europe, Coloplast has a quite superior product portfolio. I just wonder if there's a need for adjusting that portfolio to American preferences, say, I. E, having bags that can be used for longer time being possible to empty?
And then my other question would be on the hydrophilic upgrade you talk about. How do you see that in context of the deal structures? Is it at all possible for you to sort of convince deals to when people are getting back to community to actually use the products that are best for them and not the products that gives the biggest profit to the deal? Thank you so much.
Great questions. So to start with the first one, of course, I think there is an element of localization and catering to a specific market need that may come from time to time. SpeediCapSoft that we just talked about is a great example of that, right? It's a U. S.
Only product at this point and it was developed because we had that insight that the technique being used in the market is unique to the U. S. Market in its prevalence. So we had to instead of just trying to convert everybody to use a different technique, we said we will take a step forward and bring our hydrophilic coating in high quality to the technique that many people are used to. So we do this from time to time.
And I think we have done this in Ostomy as well. We had 2 or 3 years ago, we launched a high output product portfolio, which is of bags, which is used by ostomy patients in the U. S, primarily in the hospitals. So we have done this from time to time and I foresee that continuing to happen in the coming strategy period. To your question about hydrophilic upgrade and can we ever do that completely, I mean, I think it's always going to be something that is done with effort.
It's not going to happen automatically. But I think that's why we have a commercial organization. That's why we do innovation. We bring innovation that is compelling. Through our commercial organization, we educate users, we educate clinicians.
And we know that the dealer reluctance to provide premium products is only successful when users and clinicians are not informed or educated, right? And that's what we try to change every day. And so I'm confident that certainly it's not something we can do overnight. You've heard I think from us before how when you look at the U. S.
Market, it's had reimbursement for even one time use catheters for only about 10 years. So the market is in a relatively early stage of development and it's on our it's basically our task to get it to where all users have access to and are educated about the hydrophilic products. Next question please?
Just follow-up on
Sure.
Thank you. Our next question comes from the line of Christian Rohm of Nordea Markets. Please go ahead. Your line is now open. Hi, good afternoon, Manu.
Thank you for taking my questions. I have 2, please. So the first is to how COVID has impacted market dynamics in the U. S. Over the last half year.
So I think Coloplast has generally in Europe seem to benefit from being the market leader. The COVID seems to have benefited the market leader. Has a similar dynamic played out in the U. S, of course, understanding that you are not the market leader in Ostomy, but are the market leader in catheters? And then my second question is to this increase in NPD share that you report for catheters in the U.
S. When I go back and look at what your at your last update at Capital Markets Day in 2018, you reported that your market share had increased by 23 percentage points from 2014 to 2017. So my question is, given that you now report that the market share is only up by 6 percentage points from '15 to 'nineteen. Has the market share moved at all over the last couple of years in the catheter market? Thank you.
Okay. Great questions. Let me speak to the COVID situation first. Here's the reality. I think all the patterns that happened in Europe happened in the U.
S. Also. But just like we didn't really shut down completely in the U. S, I think all of those patterns were much more muted. So for example, the demand spike that happened in March in many places, we believe there was a bit of a demand spike in the U.
S. Also at the dealers. It kind of happened for us into April, but within that quarter, it smoothed out and that demand was consumed. So, it was muted. As far as competitive activity goes, I think you could argue on the margin maybe the on the ostomy front, for example, we were not able to implement all the Premier accounts we would have if there was no pandemic.
So in that sense, it may have helped our competition. Keep in mind, share taking is what we do. We are share takers in this market. And for that, we do need more open access than we had for the better part of that period from late March into June. Since then, I think things have opened up and I think everybody is getting better at navigating this.
I wouldn't say we are back to everything being great and normal. We do see a decline in total volume of patients, which given the physics of the business, I think we are going to expect something to happen here in terms of some maybe ups and downs in demand, which we are watching very closely for the first half of the next year. So again, on the COVID situation, all the same kind of things as anywhere else in the world, but much more muted, I would say. Looking to your second question about catheter share, I do think that the share has been maybe not as volatile as it was in the early part of previous strategy period. But I think a big part of that is also that our key product in the market has been FLEX scutiprole, right?
And so FLEX is a 52 catheter. It's primarily for users who have tried 51 and it's not working for them. So in that sense, it's there are NPDs who also use Flex, but it's primarily for users who've tried 51 and it didn't work for them. So from an NPD standpoint, sometimes there may be a bit of a delinking of NPD versus business growth. Business is doing fine.
It's done well. And we continue to be on the attack. And Flex remains this marquee product, which stands head and shoulders above the competition. And now we've also added SpeediCath Soft to the portfolio. So, I feel pretty good about our overall position and where we're going in Continence Care.
Great. Thank you very much for the answers.
Next question.
Thank you. Our next question comes from the line of Scott Bardo of Berenberg. Please go ahead. Your line is now open.
Thanks very much for taking the questions, Vanu. So first question please just relates to the current status of competitive bidding for durable medical goods. I know that there's various lobbying groups now that are suggesting that competitive bidding is delayed or that Ostomy and Urology appliances are excluded from any future program. Is this a consideration for Coloplast? And could that indeed change in any way surrounding the change of administration?
And the second question, please, just relates to a little bit more understanding of the current structure of the U. S. Ostomy market. A lot of Coloplast new products, I think, are for single use devices. Can you give us a sense of how significant the 2 piece market is in the U.
S? And whether there's any shift changes between 1 piece and 2 piece that you're able to exploit? Thanks.
Great questions. Competitive bidding, I would say, it feels fairly distant at this point. This is not to say it cannot come back, but in the last round what they announced excluded our categories. We're also seeing CMS go through a lot of changes. I don't know if you've seen, but they reorganized CMS a couple of times in the last few months.
There is a new department that's responsible for all of home products and DME POS products. And so competitive bidding would be under their purview. So as of now, I don't have any new information, which leads me to believe that I should be concerned. Now I would also add when I look at the possibility of a new administration, whether it's this one or the new or a new dispensation, what we know is that anybody coming into power would want to have growth in the economy. So I suspect that they would be looking at other things different from competitive bidding in the near term.
I also believe that if it is a Democratic administration, they're looking to expand coverage and insurance. So that should be good for the industry overall as well. So it is something we'll keep an eye on, and we'll certainly make sure that lawmakers and people at CMS are fully educated. We just don't think our categories are such that we want to reduce the options available to users. These are highly personal, highly intimate products and they are in many ways there's a reason why the Ostomy portfolio has so many SKUs.
They have to fit every individual user. And this competitive bidding type of approach works well when you are doing pretty much similar products. It doesn't work when you have this kind of range and complexity in what people need. Your second question, I'm forgetting now. Can you remind me what it was?
Sorry. Yes, it's just some clarification on the 1 piece, 2 piece market for Ostomy and what the sort of market landscape is if everything's changing there?
Yes. Great question. Yes. So U. S.
Is primarily a 2 piece market, right? And I think if you look back at our portfolio 5 years ago over the in fact in the early stages of the previous strategy period. Our innovation was very much in the barrier technology, but we had a lot more, I would say, advantage in the 1 piece segment. So what we see today is basically a result of the work that was done back then where we're very strong in the 1 piece market. We're not as strong in the 2 piece market.
But I would say for the last 2, 3 years, we have focused on the 2 piece market much more. We have a flex coupling that we have introduced and promoted in the market, which has been quite successful for us. Our click coupling also has been quite successful and a lot of the innovation that we're bringing in to market continues to grow our 2P segment handsomely. So if I look at the state of play right now, I think we are more strong in 1 piece than in 2 piece. But that's really to me a legacy effect and we're definitely making a dent in that situation by improving our 2 piece share every day nowadays.
Thank you. I believe that was my final question. Can we go back to Paul?
Thanks, Manu. I think we have time for one more question please, operator. One more question.
I think we've got enough time for that.
Thank you. Our final question for the session comes from the line of Carsten Mavson of SEB. Please go ahead. Your line is now open.
Thank you very much. I was actually just interested in hearing a little bit more about the historical performance of Comfort Medical since you acquired it because I think back when you secured Comfort Medical, we all had pretty big hopes for how fast this one could be expanded, etcetera, etcetera. But you still call it a relatively small player, and now you have ambitions again to make it the go to dealer for U. S. Patients.
So I'd like to understand a little bit about what has been holding back the performance of Comfort Medical, if that's the case, and what and how will you change this? And as a follow-up, if you have an if you can pinpoint how much of the 6% max points you have secured in both Ostomy and Continence comes from the acquisition of Comfort Medical?
All our share in direct is from Comfort Medical. That's our only direct business in the U. S, right? So that's from Comfort. Comfort has done much better in this year than previous couple of years.
I think we acquired it 3 years ago, 3.5 years ago. I think it was a new thing for us. We learned much more about our dealer space in the process. We also, I would say, had an entity in Comfort, which was good at its current size. We needed to do a lot of work to make it scalable.
And that's the work we did a couple of years ago. We've had a lot more structure put into place. We've had IT systems improvements, business improvements in the back office and so on. And the large majority of that work was completed more than a year ago. And so since and the business has grown all along.
So it's when I say when you hear us say that it's still a small part of the market, that's really a reflection on the market being much bigger rather than Comfort underperforming. Comfort is growing handsomely, so I don't want to create that impression that it's a drag on the business by any means. It's doing well. But when your starting point is 4% share, you can grow 50% and get to 6% and it's still not that much bigger. So when we talk about the next strategy period, it's really about going from these kind of low shares to get into a much bigger share over time.
Okay? And is it possible to give
a range? What will it require for you to call your go to dealer? What type of market share do you need to be at?
Yes. I'm not prepared to speak in terms of market share just yet, but I think when you are at 6%, you first go to 7%, 8%, 9%, 10%. And so what we pay attention to is, is it growing? Is it doing well? And I think right now it is.
Okay? Thank you. I'll now hand it back to Paul Marken for a close. Thank you.
Very good. Thank you very much, Manu, and very interesting questions from the participants. I want to thank you for that. In summary, we are pleased with our progress in the U. S, but we also recognize we have a lot more work to do as well.
But we are confident that with that work and on the back of the investments that we have made that we will move from a challenger to a leader position. So this draws us to the close for this workshop and breakout session. I want to thank all of our participants for your engagement and particularly your thoughtful questions. We will be now breaking for 15 minutes. And after the break, please come back and join us for our women's skincare breakout session, which will be hosted by my colleagues, Nikolay Boul Anderson and Rasmus Hanuman.
Thank you, everybody, again for your engagement. Much appreciated.
Have a
nice day.
Hello, everybody, and welcome to our next session here, which is centered around the Wound and Skin Care business. My name is Nikolai Gullanossen. And with me today, I have my successor, Rasmus Heneman, who will join me in our Q and A session. So you also can get an introduction to Rasmus, who will take over the Wound and Skin Care business as well as have his perspective on the questions that comes up in the Q and A. But with that, let's go into the next slide, please.
So what we want to convey to all of you today is that our strategy for Wound and Skin Care under STRIDE 25 is really about a focused strategy where we want to aim for category leadership within one of the biggest and fastest growing category within the Wound Care market. This is the Silicone segment. We want to grow more. We want to grow faster than the market, so we can scale the business and ultimately drive better profitability for our franchise. We believe we have a very strong point of differentiation in what we call the 3 d Fit technology.
We believe we can talk to this in a distinct different way compared to competition, and we sincerely believe that not all phones are the same. We are in this period going to do a couple of new things to make sure that we truly leverage this opportunity both from a marketing point of view, but definitely also from a portfolio and pipeline point of view. As you all know, we believe we can talk to a pretty strong performance and track record when it comes to what we have done with our business in Europe, where we have been growing faster than the market and in particular growing faster within the Silicone Foam segment. And of course, you want to build on this great momentum in our new strategy period, but in particular, we aim to scale our business both in China and the U. S.
And as you also have heard from Christian and others, in this strategy period, we will definitely also be much more active on exploring inorganic growth opportunities. So with that, let's sort of go to the next slide. And what we are presenting here is our current view on how we see the market we're operating in right now. As you well know from our fact packs, we have estimated the Advanced Root Care market to be representing around DKK18 billion to DKK20 billion growing around 2% to 4%. I do know that we operate right now in a very different context.
So we do not have better insights at this point in time to guesstimate what we see the growth being. But right now, we are still living with the data and the facts we have used in the past at our best view on how big the market is. There is no doubt about that COVID-nineteen has impacted the short term growth rates, but estimating them is quite difficult for us. Now what I want to call your attention to is the slide we also used at our CMD in London last year. And what you can see here is the reason why we are so super focused in our strategy.
We are focused on really taking category leadership within one of the biggest segments within the overall root care market, the silicone foam segment. This is representing approximately DKK 5 billion to DKK7 billion and is one of the fastest growing categories and remains one of the fastest growing categories. But we're also tapping into a new important category, the gelling fiber category, which is approximately DKK 2,000,000,000 to DKK 4,000,000,000 and also growing quite nicely. So our focus is right now to be focusing and catering for the 2 biggest segments where the growth is and where the big deltas can be made. We estimate that approximately 45 percent of total value who sits within the Foam segment as well as the Gilling Fiber segment.
And as you can see here, it represents approximately 2 thirds of the total growth. So this is the place you need to be and if you want to be in the growing segments. Let's take the next slide. Now as you well know from our quarterly reports and what you've heard from both Christian and Anders, there is no doubt about that we have had a very strong momentum in our business up till COVID-nineteen entered. As you can see from this slide, we were running with quite significant positive momentum up till COVID-nineteen.
We saw very nice growth in our European business. We saw very nice double digit growth in our U. S. Business and also our emerging market business was growing very nicely. As mentioned a couple of times, the key growth driver for us was our unique technology, 3 d FIT technology within our silicone franchise.
So one of the key growth drivers was our biotin silicone franchise. Now then Corona came and as you can see on the next slide, we also saw an impact on our business. And in particular, as we have been reporting, we saw an impact on those businesses within our Wound and Skin Care franchise that were highly exposed to what we call the hospital segment or the secondary care segment. And we have 3 geographies where we in particular are exposed to the hospital segment. That's China, that's France and that's the U.
S. That is also 3 of our biggest geographies. So where they are hit due to the corona impacts, it also has an impact on our business. And as you can see on the curve on the left side of this slide, we saw our Q3 diving quite deep due to lack of access, due to lower amount of procedures and overall also less patients simply coming to the facilities. Now the good news is that we can see here in Q4 that things are moving in the right direction and Q3 for sure was our bottom.
We can see that we now have access across these geographies again. We can see procedures are now taking place again. And we can also see that our businesses are picking up in those three geographies. So we believe that Q4 will be seeing a nice uptake in momentum and Q3, as I mentioned before, being our button so far. So as we move on to the next slide, let's also talk a little bit about how do we sort of refer to our achievements during the past strategy period, the strategy that we call LEAD20.
But as I just mentioned, we believe we have proven that we have a pretty strong track record and performance record across all of our European markets. We can more or less tick mark every single European business in terms of growing more than the market. And as I mentioned, growing significantly faster than the market within the category we focused on, which was the silicone foam segment. In the past period, we also set ourselves up for more ambitions and more growth in China and the U. S.
We have created new setups, we have created new leadership teams and we have also created new commercial infrastructures for our businesses in China and the U. S. We are in particular very proud with what we have been doing as been saying a couple of times with 3 d Fit technology as this has been our growth driver. And what we are in particular very pleased around is that even though we didn't came in as number 1 in this category, we have managed to take share and actually take substantial share within this category. What we also are pleased about is that we in the last part of this lead 20 strategy period has launched more products.
We have first of all now a complete portfolio when it comes to our biotane silicone portfolio. But on top of that, we also have launched a silicone contact layer. And lately, we have also started to embark on entering the gelling fiber segment with Biotene fiber. So we feel we have delivered across the different strategic teams and we believe we have a pretty strong point of departure in terms of embarking on a new strategic period. Let's talk about that with this new slide.
So the essence of Strike 25 for Womenskincare is similar to some of the things you've seen in Chronic Care. We have 2 geographies that represent significant opportunities for us, that is China and that is the U. S. In China, we have ambitions of really continuing to be a market leading player within the Chinese Wound Care market. And what we need to do in particular is to accelerate with our Silicone portfolio to take share and grow faster within the Silicone segment than we have done up till now.
In the U. S, we are focused on the acute channel. So what we need to do in this strategy period is transform our strategic focus on silico sorry, we just had a small area here, sorry guys. To focus on our desire to take our franchise in the U. S.
From not just being a Wound and Skin Care business, but being in particular a Wound Care business. And then in Europe, we need to build on our momentum. There is no doubt about that in Europe, we have a strong momentum, but we need to build on it by doing more marketing, but definitely also by increasing our share voice in the European continent. How do we do that? We need to do more with 3 d Fit technology, but we are also going to launch more products into our pipeline.
On top of that, we also want to make sure that those key brands that are going to drive our growth going forward are at the best possible level from a margin point of view. So as you heard Christian speaking into, we want to drive our profitability, 1, by driving more top line, but we're also going to do it by ensuring that the brands that are driving our growth has the best possible margins. So we're going to do a couple of things also to see a margin uplift. And then as you've heard, we are going to take an active approach to find out how we further can accelerate by doing non organic activities. Let's talk a little bit about 3 d Fit technology and why we are so excited about it.
So if you go to the next slide, please. As you have seen and heard, we are pretty proud and pretty happy and pretty pleased with what we are doing with 3 d FIT technology. Why? Well, first of all, we believe now that we have created consensus among our customers and particular key opinion leaders that the best way to handle wounds is to take care of the exudate in the wound bed. And to do that, you need a 3 d fit technology approach because this is the most effective and best way of ensuring conformability.
Now what we also have done in the past period and continue to do is to prove the 3 d FIC technology from a clinical and scientific point of view. We have now more and more evidence sorry, speaking to the fact that it is clinically different and that not all forms are the same. And we can also prove it. As I mentioned before, we are not only a follower anymore, we are actually the leading silicone provider in a couple of geographies. Next slide, please.
Now what we also want to do is to ensure, as I said in the beginning, and that is to cater not just for the Silicone Foam segment, but also for the Gilling Fiber segment. This is an attractive value pool. This is an attractive growth rate that is coming out from the Gilling Fiber segment. So we have recently launched the product that we talked about at the CMD in London, the brand BioChain Fiber. This is a gelling fiber solution with what we call a Hexalog technology that locks in the exit date in a unique way that has minimal shrinkage and last but not least has a very cohesive selling profile.
Let's talk about the next slide. So what we're doing here is not only pursuing 2 different segments. We're actually also believing in that we have a synergistic market approach because by catering to both the gelling fiber segment as well as the silicone segment, we can now address the majority of the wounds that are out there. So with biotin silicone and 3 d FIT technology, we are solving for wounds that are less than 2 centimeters when it comes to expedite pooling. And for those wounds that are deeper and require different kind of solutions at those that are less than 2 centimeters, we can now use Biochain fiber with a Hexalog technology actually in combination with Biochain Silvertone.
So what we believe we can do by catering to both of these two segments is that we can have synergies. So we actually believe we can sell not only into a new category, but we can actually also get synergistic effects to our Biotensilicone franchise. How are we doing in terms of doing this job? Well, let's take the next slide. And what you see in this slide here is a couple of things.
And the headline is that we believe we actually are off to a pretty good start when it comes to biotene fiber. First of all, we believe that the uniqueness of the Hexalog technology and the feature and the benefits from the Hexalop technology is being proven in the market, not just by us, but actually by our customers and our clinicians. We are now getting clinical feedback from our customers that the core value proposition of Biotene Fiber is actually working and being demonstrated in their clinics. And if we look in terms of how we're doing from a performance point of view, we're actually also pretty pleased. What you see here on this curve on the right side is how we're doing in the German community segment for selling fibers.
This is one where we have a very big competitor that has been owing this category for a long period of time. And we have even under corona circumstances been able now to tap into more than 10% of this category, a category we never have been in, a category we just launched into, as Anna mentioned, even though we were under corona circumstances and are taking 10% of that category. That is something we are pretty pleased about. And we can also see from the other markets where we have launched Biatain fiber that the uptake and the feedback from our customers is very positive. And as you can see that has given us confidence, Confidence in terms of what the product can do from a clinical point of view, but also confidence in terms of what we can do with it from a market share gaining point of view.
And as you can see here internally, we can see that our frontline right now is increasing the expectations for what we can do with BioChain Fiber quite dramatically. So with that, let's go to the conclusion slide for what we want to talk about when it comes to STR1VE 25 and the Wound and Skin Care business. So the heading is, we want to grow because we want to scale the business and we want to improve the profitability. The proxy for that is that we are growing faster than the market. And in particular, our focus will be on U.
S. And China. And in particular, within our key geographies, we want to win within the silicone segment with 3 d Fit technology and our fiber solution. But we are also going to bring more products into our portfolio by driving a new and exciting pipeline. And we will definitely keep an eye on what we can do from a non organic point of view, both in terms of channels, technologies and other geographical opportunities when it comes to non organic moves.
So in conclusion, we feel that we have a lot to capitalize on and we have a lot to aim for in the new strategy and we believe that we now have clarity around what we need to do to take this business to the next level. So with that, I think we are ready for the Q and A. And what we're going to do here is we're going to have Rasmus Heneman joining me for the Q and A session. So operator, we are ready to take some Q and As. And I will just move a little bit here, so we can get Rasmus into the picture as well.
So hey, Rasmus, so before we go to the Q and A, why don't you give just a short intro to yourself, so our audience is acquainted
with your background. Definitely. So nice to meet everyone. My name is Rasmus Heneman and I've been with Coloplast for 15 years. I have worked in mainly in our headquarters here in Denmark in chronic care.
But I've also worked in our U. S. Subsidiary for a couple of years. So I've been on both sides of the commercial spectrum. Some highlights from my career at Colopest has been working with the Ostomy Care business with the launch of global launch of Insurer Mio and Rava and also starting the consumer journey for chronic care.
And I'm very excited to join Wound skincare and be here today.
Great, Rasmus. So operator, we are ready for the questions.
Thank you. I remind you that both analysts and investors may ask questions on this call. Our first question comes from the line of Veronika Dova of Goldman Sachs. Please go ahead. Your line is now open.
I have 2, please. One is on the gelling fiber and just your thoughts on kind of how replicable the experience you've had in Germany is in the other markets. Obviously, pretty impressive performance in a fairly short amount of space, but I just wonder how realistic you think you can replicate this as you go into other geographies. And maybe if you can remind us which markets are on the hit list for the remainder of the year and as we move into 2021, That would be helpful. And then my second question is sort of a bigger picture on M and A.
I appreciate you like to be more active, but I think it's been an ambition of the company for a fairly long amount of time and it's been quite difficult to find the targets that are suitable. Maybe, Nikolay, can you talk a little bit to sort of how your priorities are changing in terms of what is it that you're looking for on the M and A front? Is it are we looking at sort of distribution on a regional basis? Are we looking at new technology? Are we thinking bioactive?
Sort of what is it that you are now looking for? Thank you.
Thanks, Veronika. Super good question. So let's start with the fiber. So first of all, yes, we are super pleased with what we are seeing in terms clinical feedback, but also in terms of the shares we are gaining in the markets where we have launched it. As we also talked about last year at the CMD in London, we are right now having a non antimicrobial solution and we are catering also to bring in antimicrobial solution for biohane fiber into the market as soon as possible.
So right now, our rollout plan are reflecting those markets where we in particular can cater for the non antimicrobial drilling fiber segment and that is driving our in particular in Europe see a pretty big potential for. Now in terms of M and A, that's of course a super good question as well, Veronika. As you can see here from our strategy, we have a couple of geographies that we are super focused on. So what we're also doing in each of these drugs is as opposed to find out are there local things we can do there that really can scale our business. So we're keeping an eye on not just thinking about M and A from a global point of view, but also from a regional or geographical point of view.
And here there are different opportunities per geography. So in some markets it might be more in some geographies it might be more channel oriented, while in other markets could be pipeline or technologies that we are focused on. Now we are not going to enter into the so called prescription market, so the biologics, that is not on our radar, that is not on our strategic frame for this strategy period, given that it's a very different regulatory environment than the one we operate in today.
That's great, Nikhla. And thanks. And can I quickly squeeze in a follow-up, which is when do you have the antimicrobial gel?
Well, we will have it we will get it to the market of course and exactly what that means we're not going to go into. And I also think there is sometimes a benefit in not having the entire portfolio from day 1 because that means we can maximize within the sub segment the non antimicrobial and get the whole category established. So I think there is plenty of things to do with biotin fiber as we know it today. And that's what we are pursuing and that's what we are striving for. But of course, we want to have a complete portfolio down the road.
Understood. Thanks so much.
You're welcome.
Thank you. Our next question comes from the line of Annette Lueger of Handelsbanken. Please go ahead. Your line is now open.
Thank you so much. Nicolai, could you address how you see some of the European markets like France, Italy, Spain, right now in terms of COVID-nineteen, there were residents and infected patients, is that having any effect? Or do you fear that I understand that most of you see recovery from April, May, but do you feel that the recovery to normal state will take a longer time also because the hospitals has a lot of precautions to take when taking in patients?
Thanks, Janelle, for your question. There is no doubt about that we do see an impact on patient inflow to both the hospital, but also to the community channel across the geographies we talked about. We have seen as let's say, as France started to open up, although we now can see that things are probably going to go a little bit backwards in terms of things being closed down. But as we saw France opening up, we clearly saw that the community access started to open up faster than on the hospitals. And we still see that even in the hospital channels in France that access is limited from our side and we also see that there's simply less patient traffic than they used to be, but getting closer to normal.
Also, I think that is the case when we talk about both, I think you mentioned Italy and Spain. However, a market where we saw things actually getting fairly quickly back to something as close as normal in terms of patient inflow was in Germany. However, access from our point of view is still, let's say, restricted to a certain degree when it comes to the hospital channel in Germany, while in the community and the home care channel, we feel things are pretty good from an operational point of view. Did that answer your question, Annal? It sounds like we did.
It sounds like we did. Yes. Another question from my yes.
You were fading a little bit out. I couldn't hear if you had additional questions to the first one about geographies.
No, I don't have anything on geographies, but I would like just to add on the M and A side. Is there any are you have a preference for smaller things or would you be a part of the, I would say, consolidation when in the Wound Care segment, which is pretty fragmented?
I think as you've heard Christian saying, we are open. We have a very different capacity today in our organization in terms of doing M and A. And I think that means we can cater for everything from smaller ones to bigger ones. End of the day, what determines what we go for is what makes strategic and financial sense. And that's what will be sort of events we will use for
our considerations. And then maybe adding to that, Nicolas talked about how we have a very focused agenda and M and A that can advance that agenda is course interesting versus a purely opportunistic approach. Okay.
Thank you.
You're welcome, Anil.
Thank you. Our next question comes from the line of Kit Lee of Jefferies. Please go ahead. Your line is now open.
Thank you. I have two questions, please. I think the first one is more of a broader question. Do you feel the need to have a broader product portfolio today to win some competitive accounts? So I guess for some accounts, do you feel that you are at a disadvantage against other bigger competitors?
Or is that not the case? And my second question is just a clarification on the Jolly Fiber. The 10% market share that you disclosed in Germany, is that just for the non silver category? And can you just remind us how big is the silver category segment within German fiber?
Yes. Thanks for those questions. Super good. So if we start with the first one, I sincerely believe we have the breadth and the depth in terms of what we need to do within the silicone category. So no, I do not see that there is a need for, let's say, or there is gap in that portfolio as it is today.
We need, as we mentioned before, to make sure within the gelling fiber that we also bring in the antimicrobials and that's already in our pipeline and that is advancing in our pipeline. So this is a question about time when that will hit the market. So also in that space, we believe will be very competitive in the coming period. So we do not need to do, let's say, more on those two fronts. If there are other new categories that are coming up that suddenly seems to be growing fast and stuff like that, that's probably something we will then be considering.
But for now, our focus is on silicone foam segment and the gilling fiber. In terms of the size of the gilling fiber segment, then it varies a lot from country to country. So in some markets, like for instance in France, there is no reimbursement for drilling fiber with antimicrobials because there is no reimbursement for antimicrobials in France overall. So in France, we don't need an antimicrobial. Now for instance, in other geographies, we see that there is a bigger, let's say, segment for antimicrobials and non antimicrobial products.
And of course, it varies from country to country. So it's difficult to speak about a general perspective. There's a lot of geographical differences and that is also what is reflected in the way we want to roll out the products. And
is that 10% market share in Germany for the overall gelling fiber category? Or is that just for the non antimicrobial?
This is for the plain gelling fiber, so without antimicrobials. So the category we play in and the category we can refer to is cap.
Yes. Thank you.
You're welcome. Thanks for the questions.
Thank you. Our next question comes from the line of Oliver Metzger of Commerzbank. Please go ahead. Your line is now open.
Hi. Thanks a lot for taking my questions. My first one is on intellectual property. So you showed if you combine the 3 d technology and silicon that it has some superior results. Is there any kind of patent protection for a combination?
So if not, so how evaluate the risk that competitors might take the approach if the clinical data is so good? That's the first question. The second one is on the wound care market from a global view. So in general, the wound care market is comparatively mature. The silicon and gelling fiber appear as an attractive growth niche.
How long do you think might this niche be attractive? Do you see an increasing competition going forward? And also in that context, do you think that some other technologies might become more important also back to this multiyear discussion about negative pressure, whether it eats up some of this traditional wound care? That would be great.
Can you repeat the first question again? The patent protection, yes, sorry. Yes. Okay. So the first question around patent protection, yes.
So our biochem silicone is fully IP protected due to the way we have patent protected our phone. So it will not be possible to create a phone similar to ours, which is embedded in our 3 d Fit technology. So that is fully protected. In terms of how much growth we see going forward in terms of those categories that we are focused on. We believe right now that within the foam category as such, we see that no matter where we go that the markets are converting to silico solutions because they simply from a clinical point of view and from a usability point of view are more attractive and more relevant.
So the market will be converting from, let's say, nontraditional home products towards silicone And there, there is still a lot of potential and a lot of momentum. So I think within this strategy period, you will still see the silicone foam segment being a quite substantial segment of the total value pool within Wound Care. Also for gelling fiber, we also see that gelling fiber makes a lot of sense. That's why it's one of the, let's say, heavily used product solutions out there for those wounds that are deeper than 2 centimeters. So that's why we're also entering into that.
So by catering to both the foam segment and to the drilling segment, we are addressing almost the majority of the wounds that are out there. Now in terms of disruptive technologies that may enter, that's a good question, but it's also a very speculative question. We are keeping an eye on what's going on. We believe that given, let's say, the role we play in Wound Care and the role we play in general as a player in Coloplast, we are contacted by a lot of, let's say, developers and other companies, be it smaller, bigger ones in terms of new technologies. So I think we are in good contact with the market in terms of what's going on out there.
And if there are interesting things, we will of course evaluate it and consider as part of our future offerings. But for now, we do not see, for instance, you mentioned MPWT as being an area we want to start to invest in. We believe we have some very attractive deltas to be made within drilling fiber as well as the silicon fiber segment. And as I just mentioned, don't forget, we have 2 distinct geographies, China and the U. S, where the silicone opportunities are significant for us.
So tapping into those 2 growth streams will give us a lot of attractive growth. And by the way, it's also a very profitable segment to be in because they are priced higher compared to some of the other categories. So it's also important from a profitability point of view.
Okay, great. Thank you very much.
You're welcome.
Thank you.
Let's take the next question.
Our next question comes from the line of Scott Bardo of Berenberg. Please go ahead. Your line is now open.
Yes. Thanks very much, Nicola, Rasmus. So you highlighted then that you believe that around 45% of the advanced wound care these 2 combined categories? What percentage of Coloplast current these two combined categories? What percentage of Coloplast current wound business relates to those categories, please?
And I think, Nicolas, you mentioned that there is one very significant competitor in the gelling fiber category, which you're displacing somewhat. Can you remind us who that competitor is, please? And are you aware of any alternative launches, if you like, that or other competitors have to maintain position in this industry? Thanks.
Yes. Hey, Scott. Thanks for the questions. So obviously, we do know that entering into drilling fiber is basically a new category for us to play in. So of course, we have a very low proportion of our total revenue attached to the gilling fiber category yet.
But when it comes to foam, we as we just talked about, we have 2 types of foams out there right now. So we have the silicone and the non silicone foam solutions out there. And almost 50% of our total franchise is attached to the phone, be it in silico or non silico. So I think that's as close as I get to that. Well, in terms of competitive responses, I think, don't get me wrong, I don't want to come across in the wrong way, but I think the best one to answer that would be competition themselves.
So I think they can answer better than I can. But there is no doubt about as we also presented on the previous slide, we are very, very happy that the things we saw when we created the product as distinct benefits of BioChain Fiber versus the lead out there is being proven not by us, but by our customers. And the feedback we are getting from our customers is that they is different. It is not just another gelling fiber product. And I think also there is a big desire to try something else given that you have had a single player who have been dominating this category for a long period of time that there is a sincere desire to try something else.
Now when we then offer BiTE in fiber, what is very important is that we not just end up in a lot of people who try it out, but actually are coming back and expanding their use and repeating their use of the product. And that's what we also are seeing. And that's, of course, what also gives us a lot of appetite on this product. And I mentioned before, what is also super great for us is that it doesn't mean we are taking focus away from our frontline. This is about being able to sell Biatain Silicone in combination with Biatain fiber makes a lot of sense also for our customers.
Thanks, Nikola. Makes sense. And are we allowed to know who the main competitor is in gelling fibers? Can you disclose that?
Yes, that's ConveTech and the brand Aquacel.
Exactly. Thanks very much guys. Appreciate.
Thanks, Max. Thank you. Next question?
Final question for this session comes from the line of Janik Denholm of ABG. Please go ahead. Your line is now open.
Hi, guys. Thanks for the session and taking my question. Just a quick one. I think you noted that in the U. S.
In particular, you aim to become a wound care business rather than a wound and skin care business. Just some thoughts on how you see the skin part. Is that potentially something that's even or ought to be spun off later on? Or how should we view that component, please?
I think the point here being that we have a big skincare business today and not so big wound care business. Of course, the aim in this strategy is to make our Wound Care business significantly bigger. We do however see that there's a lot of synergies by having both wound and skincare because a lot of the customers that are big on skin are also big on wound. So there is a lot of go to market synergies by being in both a wound and a skincare player. And on top of that, remember, we are catering to the acute channel and in acute it's very much about winning IDNs.
And IDNs have often a lot of contracts where it's a combination of women's skincare. So we actually believe that our ability to compete in the market in terms of winning IDN contract is enhanced by having both the women and the skincare franchise.
Okay. Thanks for clarifying.
You're welcome. And I think that was the last question. So first of all, a big thank you for the questions and thanks for dialing in. And with this, I also want to wish Aspen's all the best in his new position. So once again, we will move on and have a small break and the next session will be on IU for the U.
S. Thanks guys.
Will I be able to ever maintain a relationship? Will I ever be able to have a relationship? Because it got to a point where I really felt that I would never be able to engage in any kind of sexual activity at all. It was around high school that I realized that I had a problem. What do you do if you're 15 and you're not responding to situations the way that some of your friends are?
I was too embarrassed to talk to anyone about it. I was too afraid to talk to anyone about it. Would they view me as less than? Was I not going to be seen as a man? Would I not be seen as being masculine?
I've been in the military. Played sports. I've gone for the better part of 15 years not knowing the cause of my condition. But when I went into that urologist's office, and within 30 minutes of walking in there, I had a diagnosis for my problem and a solution, the right solution. I've made that up.
Literally. I've literally just made that up. But do I tell anyone that I have this implant? How are they going to feel about it? Will I still be looked at as less than because I'm needing an implant at all?
I tell anybody who's going to listen about the implant. Many guys will experience erectile dysfunction at some point in their lives. And what I want them to know is that there is a solution for the product.
Hi, good afternoon, everyone. My name is Steve Blum, and I've been with Coloplast for about 4 years. I joined Coloplast as the Head of Growth for North America and then about a year ago assumed the role of President for what we now call interventional urology. I've been in medical device, specifically in implantables and surgical for about 20 years. So I'm excited to talk about our 5 year plan for IU.
So for this segment, we're going to cover several things. We're very excited. We feel like we're going on offense. We expect to deliver upper single digit growth, we expect to continue our increase in profitability. So we're excited about that.
Some things are going to change, and you're going to hear some different focus areas call maybe heard about Endo to the U. S. Over the past many years, and we have not delivered on that. But that's going to change, and it's already changing. We're excited about the trajectory for that, and I'll tell you more about that in a bit.
And then a couple of things you've not heard about in the past, innovation and M and A. And we've got a game plan that's going to drive value for the organization and value on all fronts, and so we're excited about that. So at the core of what we do, it's all about patients. We try to take that into consideration when we hire people and we look at their value system. We look at their motivations for joining Medical Device.
We know there's debilitating diseases around the world, and we've got good solutions for all of those. So when we design clinical trials or education programs or products and innovation, We listen to the voice of customer and the voice of patient. Here you see below actual patients in the primary spaces that we play in. We've got erectile dysfunction. For women's health, we have stress urinary incontinence and pelvic organ prolapse.
And then we have kidney stone disease. So we'll talk about each one of those in detail. So if we look across the business areas, we actually have a lot in common. You see the prevalence of endosurgery as far as kidney stone disease. 11% of the world's population on the men's side will have that.
We've got a portfolio that really we can scale across the globe and really drives value in the mature markets that we have it. And then if we look at men's health and women's health, they're very similar. They're unmet needs. There's very low awareness, single digit awareness, and we've got great solutions to drive patient awareness and education for that. And then in the past, you maybe heard the 4th business that we have a specialty interventions or general urology, and those names didn't resonate with us.
And so we decided with that franchise to go ahead and focus more on our strong suits and that's fully cell catheters and drainage systems. So we now call that bladder. So before I talk about the future, we always need to reflect upon the past. And I'm using the fiscal year 2018 2019 as our base line here just because COVID was so disruptive for us, and I'll talk about that later. But if you look at urology care and now interventional urology, we've actually had a very nice run.
But as Christian mentioned last week, it's been a bumpy road. And we now feel the full support of the Coloplast organization and are very excited about the opportunities that we have. So we are a very low single digit player. Our growth was good. It was modest.
And we weren't really professionalized as a business. But we still had that growth. And over the last 5 years, we've had even more impressive growth, largely due to the professionalization of the business and also expanding in North America. This is a slide that is a little bit busy, so please allow me to kind of navigate you through it. If you look in the upper left hand corner, you see our role within Coloplast.
We're about 11% of revenues. And if you look in the lower left, how do we get there? And you see 2 circles. 1 is by business, and you can see that each segment contributes nicely to interventional urology. Men's health is the largest.
Women's health is the number 2, but quickly followed by ENDO. And then if you look at the circle to the right of that, you'll notice the geographical split. The slight majority of our business is in North America. Europe continues to be a stronghold for us, and we think great things are to come for emerging markets. So if I could guide you now to the upper right hand side, the urology market, we're about a 15% player, but that's a little distorted in a negative way because we don't play everywhere.
And so you see the circles below. They show our different business areas. And we have a very strong number 2 or number 3 position in each of these segments. But that's only where we play. So part of our plan for growth is to play elsewhere, and I'll talk more about that as well.
You see the market sizes below that. They're impressive. We've got a bigger appetite for more. And then if you look at the lower right, you see how we performed with the market. And we're pleased to say over the last several years, we've outperformed in each segment, specifically so in men's health and women's health.
This is a visual depiction of colblast against the world. And if you look at the competitive landscape on the men's health side, it's a duopoly. It's us and it's Boston Scientific. And we're growing the market and we're taking some share and we feel pleased about that. On the women's side of the business, we've got 3 players.
Johnson and Johnson has a huge legacy in this space. They're considered the gold standard. We've also got Boston Scientific and Colplast. Our growth has been strong there and we continue that in the next 5 year period as well.
Once again, we thank you for your patience. We have resolved the technical issue. I will now hand back to Steve to continue with the presentation.
Thank you, operator. I actually do not see the slides presently. So if you could reengage those. Thank you. And my apologies to everyone.
I know your time is valuable. And so I hope you can hear me now okay. I wanted to talk a little bit about COVID as I've attempted to do a few times. And so we had a very strong beginning to this year, almost 2 quarters, where we're executing to our plan. We're growing into the double digits and we're very excited about the outlook.
And then as we all know, everyone on this phone was impacted by COVID in some way. And we saw that elective surgeries around the world were postponed or canceled. So we did all the right things as a business and we ceased what we could and we kept our listening systems, our quality systems alive. But at the end of the day, we're very pleased with where we are right now with respect to our return to the market. We're seeing very nice growth around the world and we're seeing inconsistencies though in where we are growing, But we had a very strong August, much better and earlier than expected where we were almost to index 100 and we're actually pleased with September as well.
So, here's where it gets exciting and I'm really glad that we had the technical issues figured out because this is our 5 year plan and our strategy. And if you look at the STRIVE 25 will, you've seen this from others as well, but it's customized for interventional urology. And so I'm going to start in the lower right with invested employees. They're the foundation for why we do what we do. We've got great employees who are highly engaged.
We've been bringing new competencies into the organization and we're excited to develop them and take us to a different level than we've been in the past. And then if I can see to the upper right, the top line growth, we will continue to execute on the programs that have been working and that comes with that upper single digit growth and we've got plans to go ahead and kind of fortify that trajectory there. But where it gets new and very exciting for interventional urology is on the upper left. And that's the innovative solutions. We've not had that in the past.
We've got a very robust portfolio on the organic side, so innovation internally. And they're also very active distribution opportunities and presently with M and A as well. And all of that would be for not if we didn't continuously improve. And so that's in the lower left hand side. And you see operationally, we're continuing to professionalize, get smarter, get better and faster and nimble, and we look forward to executing to that as well.
So this next slide talks about the different businesses and we've prioritized a pipeline that is customized to each business. But if we look at the common threads, we've got healthcare systems around the world that are largely wanting the same thing. They want minimally invasive. They want desire for faster procedures. Physicians want to be able to do things outside of a hospital setting.
And then finally, physicians want to be able to do more procedures. And so we take that consideration in to each of these business areas when we think of innovation. So my apologies, this slide is a little busy, but it's very important for us. And if we look in the upper left hand side, we see strengthening the core. And because we've not had innovation in recent years, we've got gaps.
We know we have gaps. We know about the solutions. We know what to do. We're already working on them. And so within the endo space, the men's health space and the women's health space, we have solves for those and we're working on those right now.
And then where it gets exciting for us is in that middle section and that's our portfolio expansion. And that's where we have new technologies that we're going to bring in that are gap fillers. So the enhancements that I just talked about are very important and they're acute, but the gap fillers will allow us to be much more competitive in the spaces we already play in. And then finally, at the bottom, you see things that are transformative. And so these are breakthrough technologies that we've got concepted that we're excited to get going on.
This slide is busy. So once again, allow me to navigate you through it. But if you look at the concentric circles here, this is our view of the world of urology. And in the center of the world, you see core. And that's where we play and we play well.
We bring a trusted expertise to our physicians. They like us. We like them. We know their disease states. We're very strong in erectile dysfunction, fresh urinary incontinence, pelvic organ prolapse.
And then if you look at the bottom of that, that's our endo side of the business. We've made a determination that we want to be in scopes and lasers, but we think it's a better opportunity for us to work with distribution opportunities there. And then if you look at the blue circle in the middle, you see target adjacencies. That's where it gets very exciting for us. So earlier in the presentation, I showed you the market sizes of where we play, but that's not enough for us.
We want to go ahead and capitalize on the physicians that we know and the other diseases that they treat. So we've identified 3 that we're focusing on. There's many that we could, but we're focusing on overactive bladder for women, prostate health for men and the sphincter for men as well. And so we're excited about those opportunities. And as Christian alluded to last week, we're very active in that space right now and we're very engaged in looking at the M and A landscape.
And then the outer ring is opportunistic. And that's where we know enough about the disease states. And we have established relationships with the physicians, but they're probably a couple of years away. You recently heard last week that we did make an investment in Francis Medical. We like this therapy.
We like this technology. We respect the management team and we see the market for bladder and kidney cancer as very significant in the years forward. So although that's a couple of years away, our excitement level has started already for that. So geographically, if I could just tell you how we're going to focus. In the United States and Canada, it's largely executing on what we've said on the implantable side of the business, so men's health and women's health.
But then we are finally bringing Endo the U. S. To the U. S. Market.
I'll talk just briefly about that in a moment. And then in Western Europe, we look to do the same thing, but better. And so that would largely be focusing on our endo portfolio and also men's health. We do see upside opportunity in men's health. And once we get some of these portfolio gaps into our bag, we feel that the Endo business will begin to thrive even more so there.
And then emerging markets is a wonderful opportunity for us. We are focusing on them. We've identified a series of countries that are very targeted and very specific. We know the business there. We're developing an infrastructure there.
We see opportunities, especially in Latin America, Middle East, Russia and Brazil. So excited about what that brings. And then finally, you have been hearing about Endo to the U. S. For a long time.
It's my understanding about 10 years And we didn't have the portfolio to do that. And because it's a strong contract play, we've not had enough products in that portfolio to make that business thrive. And so I'm actually pleased to be able to say that we've recently dedicated a field organization to that business. We've made hires. We plan on making many more hires.
And to the right hand side, you see that we're actually looking at the portfolio, but we're also looking at the distribution opportunities I mentioned a few moments ago on both lasers and then scopes as well. And so that looks to have a very bright future and be a bright driver for growth in North America. And then finally, when I think about our people and I think about our operations, I'm very proud. We've got an organization where we've got highly committed individuals. Going forward, we'll be focusing more on inclusion and diversity.
We'll be focusing more on bringing new competencies into the organization. We'll be focusing more on getting smarter about what we do and how we do it. And then operationally, we've made major strides. We can always be leaner. We can always be more smart and nimble in what we do.
And so we look forward to getting contributions from that side of the business as well. So finally, when I think about STRIDE 25 for intervention urology, I truly get incredibly excited. The opportunity is there. We have the wherewithal. We've got the right people with a growth mindset, winning orientation.
We look forward to bringing that high single digit growth and increased profitability back to Coloplast. So at this time, I'd like to go ahead and open up for questions.
Thank you. I remind you that both analysts and investors may ask questions on this call. Our first question comes from the line of Christian Rohm of Nordea Markets. Please go ahead. Your line is now open.
Hi, good afternoon, Steve. This is Christian from Nordea. A couple of questions for me. So the first is, if you could please clarify the comments you made on the potential expansion into adjacencies for your Endo portfolio, particularly the expansion into scopes and lasers. Was that to be understood that you want to do more partnerships along the lines of the Sirius product that you have already?
Or are you also willing to pursue this in terms of organic R and D investment or R and D expansion? And then the second question is on the impact of COVID and what your perception is on whether people getting diagnosed, particularly in men's health and getting referred for surgery, whether that has also picked up to near normal levels or whether the sales that you've seen here is really sort of clearing a backlog of procedures that wasn't able to get done during the lockdown? Thank you.
Yes. Thank you, Christian, and great questions. So I'll welcome answering to both of those. So with the first, we've identified that it's probably better for us to not build the incompetencies internally on scopes and lasers. And so we're actually quite happy with the trending right now with ISRS, But we do see the opportunity in the marketplace for scopes to be a bigger part of the portfolio with Endo and then also with lasers as well, laser fibers as well.
And so we're actively engaged in seeking out opportunities there. And then with COVID, you asked specifically about men's health. And so it's a tale of countries here. We've seen men's health bounce back very strongly in North America, but we've not seen a bounce back in Western Europe at all. And then we've seen spotty bounce back, inconsistent bounce back in emerging markets.
And where we had strongholds during the COVID period, during the early months of COVID period were in the bladder and the endo businesses. Those continue to perform. As we know, a lot of the products are more for general surgery and we didn't see as much of a hip to that side of the business where we did on the men's health and women's health side. But overall, we like the trends, we like what we've seen, but we do expect some of the implantables outside of the U. S.
To bounce back probably a few quarters after they have here. Thank you, Christian.
Okay. Thank you.
Thank you. Our next question comes from the line of Ed Ridley Day of Redburn. Please go ahead. Your line is now open.
Thank you and thank you for the presentation. I also have a question on adjacencies. Given your strength, I understand the areas you've highlighted, but given your knowledge and strength in particularly women's health, would you consider gynecological endoscopy as a space, as some interesting private companies in that space. And also maybe what the timeline is around moving into wider adjacencies around, for example, GI instrumentation and endoscopy? That would be my first question.
Yes. Thank you, Ed. So as I mentioned earlier, there when we landscape our future, when we kind of architected what we think the next 5 years like looks like, we've actually narrowed down on those 3 areas identified. And so the overactive bladder is probably the biggest opportunity that we feel is the best fit for colplast. And so in the women's space, there's a lot of things with fibroids and polyps and bleeding that we could do, but right now they're deprioritized.
And so we're pretty well aware. I think we've assessed around 40 different opportunities out there, but we've narrowed in on these areas I've discussed. And so we do look at some point when we fast forward maybe 5 to 10 years at areas that you just mentioned.
Fair enough. That's helpful. Thank you. And also in terms of the scale, we all know the strength of your company's balance sheet. Has Christian given you the green light for some decent acquisitions?
Or would we should be really just thinking about bolt ons and early investments?
So we feel fully supported by Coloplast. We went through a strategic review. And as Christian mentioned, it was a bumpy ride with interventional urology or formally urology care. And right now, I would just say that we've opened a new chapter. We feel very good about the support that we're getting.
We feel very good about our appetite for looking into other adjacent areas. And everything is on the table, but we are focusing in on those 3 disease states that I mentioned. But I would just say that you saw reflected in the investment with Francis Medical, that's an early stage asset, but we like it. We like the disease state. We like the opportunity.
There's not a lot of good therapies out there right now. Radicals and histamine, yes, and radiation are the 2 alternatives.
Thank you. Thanks very much.
Thanks, Ed.
Thank you. Our next question comes from the line of Veronika Dubajova of Goldman Sachs. Please go ahead. Your line is now open.
Hey, Stephen. Thanks for the presentation. Very helpful. Couple of questions for me, if that's all right. First one is just on BPH.
And I guess if you can kind of talk about ideally what you're looking for there. Obviously, there is a one very large and successful player in the market and then there's lots of things on the periphery. So I'm just kind of curious what is it that you find attractive about the space and how you think you guys can win? That would be very helpful. My second question is slightly bigger picture.
You said kind of the endo relapse in the U. S. Obviously, let's hope at this time it delivers. But I'm just curious sort of when you look at the size of the organization, do you think you need to really expand the feed on street that you have? And if you can maybe talk about your size from a commercial perspective today and where you kind of hope it gets to?
One of the things that has struck me always is you're competing with some much, much bigger players. And is that part of the challenge here? And do you really need to put the dollars into the P and L first before you guys could truly win? Or am I overthinking too much and you don't share that assessment?
Yes, you're not overthinking. So I'll respond to that one first. And thank you. And I'm here to tell you that we finally feel confident in delivering the Endo message, because we've not had that portfolio, we do now. We know Endo.
We've been around Endo for 125 years. And so you're right, there's a lot of players, the dynamics are different. In this space, it's a lot of commodity trading, right? And so what we've tried to do is and we have a dedicated sales organization that literally most of them started last week with the beginning of our new fiscal year, but we finally have a compelling portfolio to offer. And so you asked about what do we think that looks like.
We think at the end of the 5 year period, we'll still be single digit in the market share, probably somewhere hovering around the 5%. But we think we've got some inroads. Many of our customers have wanted us to get in this space in the U. S. And now we finally have a very compelling bag for that.
And then when I think about BPH, I'm actually going to zoom out a little bit and maybe look at it as prostate health. It's an area and you're right, there's one big player and there's a couple of emerging technologies. We like those. We wanted to be in that space as well and in those shoes. We see the market as significant and growing.
And as but we actually but we actually think a little bit broader, and that's the prostate health side of the business. So thank you, Veronica.
Understood. Thanks so much.
Thank you. Our next question comes from the line of Scott Bardo of Berenberg. Please go ahead. Your line is now open.
Yes. Thanks for the presentation, Steve. So I wonder if you could make some comments or reflect upon the relatively decent growth that you've had over the last 4, 5 years, about 10% growth in urology and square that with some of the comments about portfolio gaps and maybe being slightly under invested in innovation versus peers and versus your desire. I mean, has a good proportion of that growth been supported by price increases? Or is it simply a case that the market is very dynamic?
I just wonder if you could give us a little bit of commentary there. Thanks.
Yes, Scott. Thank you for your question. I'll provide a little bit of color. And as I mentioned earlier, most of the growth when we start talking that 10% for overall intervention neurology, most of that actually came from the U. S.
And that would be men's health and women's health because our endo business, as we just talked, was essentially in its infancy. And so there were a couple of structural things that we did. We also created expansions and we created dedicated field organizations. But we have seen some uplift in pricing. So we're pleased with that.
And then we've actually gotten a lot better at contracting. And so when I spoke earlier about how are we professionalizing the business, when you look at all of those different levers, they've allowed us to kind of propel us to that 10% threshold for overall IU. Thanks, Scott.
Thanks, Steve.
Thank you. Our next question comes from the line of Oliver Metzger of Commerzbank. Please go ahead. Your line is now open.
Okay. Hi. Thanks for taking my questions. My first one is on growth contribution over the next 5 to 10 years. So you have 4 fields right now and also you mentioned a lot of growth opportunities.
So if you talk about the growth contribution over the next decade, what is your idea about where growth comes? Come is more from do you see if the major share comes from the existing businesses where you still hold the number 2 position and can increase market share? Or do you see a major share coming from the new areas, which are basically potentially more attractive from an underlying perspective due to higher underlying growth but are not explored to the current stage? And my second question is a quick one on the recovery post corona. So your chart showed a very strong decline of minus 70 percent, then a comparatively flat development.
So what's in general your view about the potential pent up demand as even the development from June to August can be described rather as disappointing than as encouraging. So what's your feeling? When are the people coming back who basically waited for a penile implant, but it was postponed. When do we see this recovery?
Great questions, Oliver. And I'll go ahead and answer the second one first with COVID. We've used so many different data sources around the world to try to project out when we think the business will stabilize. And even in our best case scenario, we did not expect it to be in the state that it is now. And so as I mentioned earlier, we're very happy with where we are right now.
And we see upside opportunity, of course, going into this new fiscal year because we also know that in some markets, the elective procedures have not returned. And so they're half of what they were. And so what we're seeing right now in the markets where they have returned is actually strong. We've continued to be strong in our endo business and our bladder business. And so we feel quite good, but I do think that we're going to see over the next 2 or 3 quarters different markets turn on again and turn off.
To answer the first question about growth, so that's a great question. So when I talked about our pipeline, if you recall on the slide, I talked about some of the enhancements and then the gap fillers. Those products will largely launch within the strategic timeframe. Some of them maybe towards the end. And so we see the real contribution coming in years 5 through 10.
But when we look at some of the distribution opportunities, as I mentioned, we're working on those actively right now. And so we look at those contributing earlier and they'll be significant. And then also with our focus on emerging markets, just as we're doing endo to the U. S, we're actually taking our men's health and our endo portfolios into some of these new markets. And so the acute opportunities will be with existing portfolio and then the enhancements in the gaps and then longer term everything innovation.
So thank you, Oliver. Yes.
Okay. I have one follow-up question potentially just in this context. So the history has shown that particular interventional orgy is can be also a little bit more tricky if you think about the whole mesh litigation processes. So if you enter new areas, which are, in the most cases, also, to a stronger extent, medically regulated. Do you expect for your whole Interventional Urology business a higher business risk going forward if you graph towards these opportunities and how you want to manage that?
Great question. And I have two words. They're very, very important words and they're minimally invasive. And so everything that we've identified and I know I received another question from Scott about other therapy areas and disease states. We are all about minimally invasive right now.
And that's frankly internally with our organic development, but also at opportunity areas. So we're trying to mitigate all risk. That's the right thing absolutely to do when we do that today. But when we think about the landscape of opportunities that we think would fit nicely within our portfolio, they'll definitely be minimally invasive. Thank you.
Okay, great. Thank you very much.
Thank you. Our next question comes from the line of Niels Leth of Carnegie. Please go ahead. Your line is now open.
Good afternoon. Thank you for taking my questions. So my first question would be about your entrance to the U. S. Market with your Indo portfolio, which we, as you mentioned, have heard about before.
So which products exactly is it in your product portfolio that will be fronting this effort? And where do you think that you have a competitive edge in your Indo portfolio? And then secondly, in terms of buying U. S. Technology companies, now when it comes to Francis Medical, here you share, I think, a 13% ownership stake or so with Boston Scientific.
And doesn't that exactly show the challenge that you're up against local, very large U. S.-based companies, which may already be very well connected to these smaller technology companies? Thank you.
Yes. Thank you, Neil. So I'll address the first. And when I look at the Endo portfolio, we have a lot of SKUs. It's access, it's catheters, it's baskets.
We have what we feel is a very compelling number of those SKUs for the entire procedure. That was our big challenge before is we only had SKUs or products for part of the procedure. And so we actually feel much better poised. We've actually had some recent successes with conversations with the buying groups for that. And so we feel very good about that.
And then Francis Medical, this is the first for us. And what I can say is we're very familiar with the parent the former parent company of this platform technology, Nexera. We like the technology. We like the mechanism of action. We like the market and we like the management team.
And we're a small investor in this right now. And so what you said is accurate. But right now, we've got a seat at the table and we're very excited about that and we wouldn't have done that had we not been excited. And so I am also appreciative to Coloplast for thinking that way and looking at the vision that we have into some of these opportunistic areas that we believe in. So thank you, Neil.
Okay, great. Thank you.
And I think just one more question here. So we may have the final question coming.
There are currently no further questions on the audio.
Okay. Last chance at all? No? Okay. Once again.
Please.
There are still no questions on the audio. I will now hand back to you.
Okay. Thank you. And I would like to say on behalf of Investor Relations in Coloplast and Interventional Urology, I appreciate your time. Apologies again for the technical delays, but I appreciate you staying online and allowing us to tell our story. We're very excited about the Drive 25 horizon and the roadmap that we've designed to get us there.
So thank you again