Overview on Indian Diagnostics Markets &
Evaluation of Options to play

Importance of Diagnostics…
Diagnostics is an important component of improved value
chain in Healthcare sector by
Enabling accurate detection of health risks and disease at earlier
stages
Improving treatment and disease management, while diminishing
subsequent health problems and their associated costs
With improving economic indicators for India, healthcare
spend has increased
“Right patient with the right treatment at the right time.”

IVD Market: Global Scenario
The worldwide market for diagnostics is projected to be $28.6 billion
in 2005, of which the US market share is projected to exceed $11.2
billion
Major component of the IVD revenues are driven thru Hospital testing
accounting 60% whereas 40% is contributed by lab testing
50% of IVD companies are small businesses i.e. < 50 employees
Increasing trend of co-marketing, in-licensing & mergers
Newer FDA guidelines for regulating diagnostics and other devices
Involvement of ‘Home brews’
IVD comprise less than 5% of hospital cost
IVD findings influence 60-70% of health care decision-making

India: Economy & Healthcare
Economy
Stability of current Government
+ 8% GDP growth target
Continuity of economic &
structural reforms
Currency will hold up reasonably
Healthcare
Healthcare industry will remain
buoyant
Price sensitivities will remain
Generics will increase
More MNCs will come direct
Lab automation will show its face

IVD in India
IVD revenues in India is primarily driven by
labs contributing 65% whereas hospitals
contribute 35%
Market is divided in Public & Private customers
Industry is made up of
MNCs
Indian corporates
Unogranized players
Major companies are entering IVD businesses
with emerging opportunities with CROs,
Outsourced Clinical Trials
Reagent rental trend has started 4 years back &
is receiving fast acceptance
Product registration has started becoming
difficult
Customs duty ∼ 39% for reagents, 26% for
Instruments & 5% on life saving products

IVD Market Scenario
IVD Category Growth
05-06 in %
IVD market in India is estimated 30
30
at Rs. 10 Bn with ∼ 15% growth 25
Major component is Clinical 25
chemistry followed by
20
Hematology, Immuno & Urinalysis
15
Critical Care & Coagulation are 15
12 12
relatively lesser with usage 10
confined to Hospitals 10
The market is estimated to grow at
a healthy ∼ 15% with many new 5
drivers of growth
0
Hematology
Urinalysis
Coagulation
Chemistry
Immunochemistry
Critical Care

Future of IVD Market
IVD Market
2010
Rs. 12240 Mn
Lease/ Rental
Local
Manufacturing
Increasing
Awareness
Health insurance
Consolidation privatization
IVD Market
India Preferred
2006 Global R&D hub
Rs. 7000 Mn
Expansion of
Clinical Outsourcing

Customers at a glance
Private Labs
Characteristic
Single ownership, Small to Large
set up
Basic Urine & Blood testing
performing Chemistry,
Hematology, Immuno &
Electrolyte testing.
Purchase Decision
Fast decision, Hard negotiation,
Demanding, Servicing
Business opportunity
Chemistry Reagents
Nephlometry ∼ 25,000
Microbiology
RIA
Immunoturbidimetry

Customers at a glance
Private Hospitals
Characteristic
50 – 250 bedded
Very Professional
Better spending
Highly negotiating.
Purchase Decision
By Purchase Committee
comprising Technical & Purchase
people
Business opportunity
Cardiac markers
Drug screening
Microbiology
RIA ∼ 12,000
Clinical Chemistry
Immunoturbidimetry

Customers at a glance
Semi-Govt Hospitals
Characteristic
Medium – Big Hospital (100 –
500 bedded)
Tender based purchase with
emphasis on lowest price e.g.
Railway, Army
Purchase Decision
By Purchase Committee
comprising
Business opportunity
Microbiology
RIA
Clinical Chemistry ∼ 1,000
Immunoturbidimetry
Nephlometry

Customers at a glance
Govt Hospitals
Characteristic
Large sized (100 – 500 bedded)
Highly bureaucratic. Governed by
Govt. State/Central
Low funds & poor infrastructure
Purchase Decision
By Tender
Business opportunity
Microbiology
RIA
Clinical Chemistry ∼ 2,000
Nephlometry

Thank You!