Medical Diagnostics India Sample


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Medical Diagnostics India Sample

  1. 1. Medical Diagnostics – India April 2009
  2. 2. Executive Summary Medical Diagnostic accounts for x% of the healthcare industry in India Diagnostics market comprises of Market – Diagnostic Services Market : Estimated at INR XX bn in 2008 – Diagnostic Products Market: Estimated at INR YY bn 2008 India has more than A laboratories Drivers: Increase in lifestyle-related diseases, changing demographics, growth in medical LE Drivers & outsourcing, medical tourism, nascent but growing medical insurance, rising PE/VC investments Challenges P Challenges: Difference in import duty on diagnostic kits for public and private sector and Lack of accreditation/certification of diagnostic centers Rules and – Critical - A SAM Diagnostic equipments market is regulated by both central and state government Major governing authorities include U,V,W,X Regulatory process for diagnostics equipment is segmented into Regulations – Non critical - B Manufacturers need an import licence and product registration certificate to import diagnostic equipments Diagnostic test services market is highly fragmented with many unorganized players – Some of the major players are A,B,C,D Competition Foreign players (like U, V, W) account for a% share in diagnostic equipment market – Some of the major domestic manufacturers are X,Y,Z MEDICAL DIAGNOSTICS – INDIA.PPT 2
  3. 3. • Market Overview • Drivers & Challenges • Rules & Regulations for Manufacturers/Suppliers • Competition • Key Developments MEDICAL DIAGNOSTICS – INDIA.PPT 3
  4. 4. Indian diagnostics market is witnessing significant growth with major contribution from the In-Vitro Diagnostic (IVD) segment Market Overview Diagnostic Test Services Market • Indian diagnostic market comprises of INR bn a% Diagnostic test services market 40 Z Diagnostic products/instruments market Y 30 X • Diagnostic market accounts for x% of healthcare sector LE 20 In 2008, IVD • India currently has over A hospitals and B diagnostic 10 services market laboratories P was INR XX bn • About c% of the treatments in India are based on lab 0 2006 2007 2008 M diagnostic tests A Market size estimation is difficult as diagnostic market is highly unorganized IVD Test Segments (2008) f% g% h% S BioChemistry Immunology IVD Instruments & Reagent Market INR bn 20 b% W e% Haematology a% 15 V d% Critical care U Urine Routine 10 c% Others 5 Microbiology 0 b% Coagulation 2006 2007 2008 Source: MEDICAL DIAGNOSTICS – INDIA.PPT 4
  5. 5. Drivers & Challenges Drivers Increase in lifestyle-related diseases Challenges Changing demographics Difference in import duty on Growth in medical outsourcing diagnostic kits for public and private sector Rapid growth of India as a destination Lack of accreditation/certification of for medical tourism diagnostic centers Increasing penetration of medical insurance Rising PE/VC investments MEDICAL DIAGNOSTICS – INDIA.PPT 5
  6. 6. Organized pathlabs are rapidly expanding using the hub and spoke model, including small, independent labs in the network Diagnostic Testing Market Structure Hub and Spoke Model • Highly fragmented with ~X laboratories: CC CC Hospitals: a% Independent labs: b% CC CC • Among the labs in India LE Automated – u% Reference Semi - Automated – v% Lab Manual – w% • Organized players account for z% of market and expanding with ‘hub and spoke’ model: MP Satellite Lab Satellite Lab in large metros SA Reference labs act as regional hubs and are usually located Collection centres are located in hospitals, nursing homes, pathology labs, doctor’s clinics etc. CC CC CC CC Satellite labs and collection centres are either owned or • Reference labs: Hub with comprehensive or specialized franchised testing capability • As organized players grows their share, small, • Satellite labs: Limited testing capability; ‘feed’ reference labs independent labs are: • Collection centres (CC): Collect samples for forwarding to Becoming franchisees in the hub and spoke model either a satellite lab or reference lab Partnering with large chains on referral basis • A variation in this model is the absence of satellite labs and Getting acquired by large chains, which lowers the cost of the existence of only reference labs and collection centres expansion and start-up time for the latter Source: MEDICAL DIAGNOSTICS – INDIA.PPT 6
  7. 7. Manufacturers – IVD Products/Instruments Market Players in the market IVD Products Market Share (2008) •The IVD products market in India is primarily dominated by foreign companies •Global IVD companies like A,B,C,D have strong LE presence in the Indian market a% •Domestic players have forayed into the market cost effective and quality goods MP and are establishing themselves by producing b% supplies is imported SA •a% of diagnostic medical equipment and •Low-cost reagent kits are being imported from Foreign Players X,Y and Z Domestic Players Source: MEDICAL DIAGNOSTICS – INDIA.PPT 7
  8. 8. Major Players – Diagnostic Test Services Market (1/2) Company Overview Business Outlook X • Started in 19-- • Entered into a JV with V to set up a diagnostic • Diagnostic facilities in their subsidiary U laboratory in Hyderabad at an investment of USD YY • Facilities allow for investigation in Biochemistry, mn Haematology, Clinical Pathology, Microbiology, X- ray, Ultrasound with Color Doppler, ECG, Echo Cardiography and Treadmill Y • Started in 19-- • Established an international alliance with U for testing • A labs and B sample collection centers • Planning to set up -- labs and -- collection centers by • Accreditation: NABL, CAP 20-- • Expand operations in southern and western regions investing INR X mn • Planning to invest INR Z mn in brand building Z • Started in 19-- • Growing inorganically • U laboratories across V cities globally, W • It is looking at overseas expansion as well as laboratories in India, X collection centers outsourcing opportunities • Capability to carry over A routine investigations with • Plans on increasing their portfolio to X more labs over B technologies - e.g. biochip, DNA sequencing, • Targeted revenue of INR X bn by 20-- pathology, radiology • In 20--, acquired two labs in North India and a majority • ICICI Ventures owns a% of the company stake in Bangalore based YY • Accreditation: CAP, NABL Note: This list is not exhaustive Source: SAMPLE MEDICAL DIAGNOSTICS – INDIA.PPT 8
  9. 9. Thank you for the attention The Medical Diagnostics report is a part of Netscribes’ Healthcare Industry Series. For more detailed information or customized research requirements please contact: Natasha Mehta, CFA Subhash Chennuri Phone: +65 9651 6382 Phone: +91 98190 59664 E-Mail: E-Mail: About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. This report is published for general information only. Although high standards have been used in preparing this report, Netscribes (India) Pvt. Ltd. or Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and no part may be reproduced without prior written permission. MEDICAL DIAGNOSTICS – INDIA.PPT 9