For the complete report, get in touch with us at : info@netscribes.com Abstract: Netscribes’ latest market research report titled Coronary stents Market in India 2013 states that manufacturers of coronary stents are experiencing high demand for their products due to a number of factors. Since cardiovascular diseases have become a common occurrence among the Indian population and the healthcare infrastructure in the country is rapidly improving, it has built a strong case for angioplasty procedures in the country. Moreover, an increase in awareness and the willingness to spend on healthcare is benefiting the market. Also, advancements in technology such as the introduction of bioabsorbable stents in the Indian market in December 2012 has made such stents more acceptable to patients, thereby providing further stimulus for market growth. With growth in the number of cath labs in the country and their subsequent expansion to smaller cities and towns, angioplasties will become more accessible to patients and will aid in further development of the market. Products available in the market can be divided into two types – those manufactured by MNCs that command high prices, and those manufactured by domestic companies that are generally priced lower. It is the MNCs that serve the majority of the market with almost all the big hospitals in tier I cities, where most of the angioplasties are performed, preferring to implant stents manufactured by foreign companies over those manufactured by their Indian counterparts. The general perception is that stents manufactured by MNCs are superior in terms of quality and efficacy, whereas those manufactured by domestic companies fail to attain similar high standards of quality. Also, patients are generally unaware of the choices they have in terms of the types of stents and the various brands that are available in the market, and have to buy stents directly from the hospitals. Since profit margins are higher in case of foreign-manufactured stents, hospitals push for the sale of such stents rather than selling the Indian varieties. Table of Contents:

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Coronary Stents Market – India
October 2013

2. Executive Summary
Market
 Coronary stents market in India is expected to grow at a CAGR of x1%% over 2011 - 2017e
 There are three types of coronary stents available in the market, bare metal stents (BMS), drugeluting stents (DES), and bioabsorbable stents
Drivers:
Drivers &
Challenges
Government
Involvement
Competitive
Landscape
Buyer
Details





Challenges:
Increasing lifestyle based diseases
Improving health infrastructure
Changing demographics
Increased healthcare spending and insurance coverage
Advancements in technology and medical procedures
 Problems associated with
usage
 Constant need for innovation
and new product development
 Regulatory Bodies
 Regulatory Policies
 Regulatory Processes
Major Foreign Companies
Major Domestic Companies
Company 1
Company 3
Company 5
Company 2
Company 4
Company 6
Top Hospitals Buying Coronary Stents in India
Hospital 1
Hospital 3
Hospital 5
Hospital 2
Hospital 4
Hospital 6
CORONARY STENTS MARKET IN INDIA 2013.PPT
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3. •Economic Indicators
•Introduction
•Market Overview
•Drivers & Challenges
•Government Involvement
Regulatory Bodies
Regulatory Policies
Regulatory Processes
•Competitive Landscape
•Buyer Details
•Recent Developments
•Strategic Recommendations
•Appendix
CORONARY STENTS MARKET IN INDIA 2013.PPT
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4. Economic Indicators (1/3)
GDP at Factor Cost: Quarterly
INR tn
14
a1
b1
12
c1
a2
b2
c2
11
d1
b4
c4
b3
d2
13
c3
d4
d3
10
Q2
2009-10
Q1
2010-11
Q4
Q3
2012-13
2011-12
Inflation Rate: Monthly
%
1.0
a
c
0.8
0.6
b
d
e
Feb 2013 - Mar 2013
Mar 2013 - Apr 2013
0.4
0.2
0.0
Nov 2012 - Dec 2012
Dec 2012 - Jan 2013
Jan 2013 - Feb 2013
SANITARYWARE MARKET IN INDIA 2013.PPT
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5. Indian market for coronary stents is poised to grow in the
coming years with emphasis on drug-eluting stents
Coronary Stents Market – Overview
• Indian market for coronary stents is expected to show steady growth in coming years, providing strong
opportunities to present and potential players to earn high revenues and increase their profits
• There are three types of coronary stents available in the market, bare metal stent, drug-eluting stents and
bioabsorbable stents
• Type ‘Y’ stents experience the highest demand while Type ‘Z’ stents are still at a nascent stage
Market Size and Growth (Value-Wise)
Type 1
INR bn
Type 2
Type 3
h
30
10
0
g
x1%
c
d
a
b
a1%
b1%
a2%
b2%
c2%
c3%
d2%
d3%
2011
2012
2013e
2014e
c1%
d1%
f3%
f2%
2015e
g1%
Type 2
h1%
v
300
h2%
h3%
2016e
2017e
u
x2%
t
400
p
q
100
p1%
q1%
0
p2%
q2%
2011
2012
200
g2%
g3%
Type 3
600
500
f
f1%
Type 1
‘000
40
20
Market Size and Growth (Volume-Wise)
CORONARY STENTS MARKET IN INDIA 2013.PPT
r
r1%
r3%
r2%
2013e
s
s1%
s2%
s3%
2014e
t1%
t3%
t2%
2015e
u1%
v1%
u2%
u3%
v2%
v3%
2016e
2017e
5

6. Prices vary not only across stent types but also depending on
whether it is indigenously manufactured or is foreign made
Coronary Stents – Price Trends
Type of stent
Bare Metal
Bare Metal
Drug-Eluting
Drug-Eluting
Bioabsorbable
Indigenous /Foreign
Indigenous
Price (INR)
Remarks
• These are price at which distributors purchase from manufacturers
• When hospitals procure stents directly from manufacturers, they
can get up to ‘x’% discounts
Foreign
• Price at which distributors supply the stents to hospitals
• Difficult for hospitals to procure directly from manufacturers as
these stents are manufactured outside India
Indigenous
• Price at which distributors purchase from manufacturers
• Hospitals can get discounts on these price by purchasing directly
from the manufacturer
Foreign
• Price to the end-user, that is, the patients
• Distributors can procure the lower priced, foreign made DES for as
little as INR ‘a’
Foreign
• Was priced INR ‘u’ when it was launched in Dec 2012
• Presently, Abbott has monopoly on these stents but in future as
more companies produce these stents, the price is expected to fall
CORONARY STENTS MARKET IN INDIA 2013.PPT
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7. Drivers & Challenges – Summary
Drivers
Increasing lifestyle based diseases
Challenges
Improving health infrastructure
Problems associated with usage
Changing demographics
Constant need for innovation and new
product development
Increased healthcare spending and
insurance coverage
Advancements in technology and
medical procedures
CORONARY STENTS MARKET IN INDIA 2013.PPT
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8. Regulation of medical devices such as stents are done
through different divisions under the MoHFW
Organizational Structure
Level 1
Level 2
Level 3
Level 4
Level 5
Level 6A
Level 7A
Level 6B
Level 7B
Level 7C
CORONARY STENTS MARKET IN INDIA 2013.PPT
Level 7D
8

9. Although there isn’t any specific legislation governing the
entire medical devices industry, certain devices are…
Regulatory Bodies (1/2)
Regulatory Body A
• Regulatory Body A is the main body for the regulation of pharmaceuticals and medical devices in India
• Within Regulatory Body A, Entity B is responsible for the regulating pharmaceuticals and medical devices and is
advised by Body C and Body D
• It is responsible for establishing the safety, efficacy, and quality standards for pharmaceuticals and medical
devices
• A list of regulated pharmaceuticals and devices, Indian Pharmacopeia, is published and updated by Regulatory
Body A
• It also appoints notified bodies for conducting conformity assessment procedures including tests for all drug and
device applications to ensure that it complies with all standards set by the body
• Regulatory Body A is also divided into several zonal offices which conduct the pre-licensing and post-licensing
inspections, post-market surveillance, and recalls whenever necessary
• Apart from the regulatory functions, Regulatory Body A also offers technical guidance and trains regulatory
officials and analysts as well as monitors adverse events
• Regulatory Body A also works with the World Health Organization to promote Good Manufacturing Practice
(GMP)
CORONARY STENTS MARKET IN INDIA 2013.PPT
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10. Market for coronary stents in India is dominated by
products from foreign companies
Competition Overview
Market Share – Volume-Wise (2012)
• MNCs have a dominant share in the coronary
stents market in India
• Products from MNCs are generally viewed as
superior to those manufactured by domestic
companies
Company 1
Company 5
Company 2
Company 6
Company 3
Others
Company 4
 As a result of this, there is a higher uptake of
products from foreign companies while Indian
manufacturers find it difficult to get buyers for their
products
 Even Company Y which exited the stents business in
mid 2011, commanded ‘u’% share of the market in
2012 through its products that were stored as
inventory
• Company 1, company 2 and Company 3
together account for ~’m’% of the market in
terms of volume and ‘n’% of the market in
terms of value
• Company 1 is the clear leader in the market
with ‘a’% share in volume terms, followed by
Company 2
a%
h%
g%
f%
CORONARY STENTS MARKET IN INDIA 2013.PPT
b%
d%
c%
10

11. Competitive Benchmarking – Private Companies (1/4)
Key Ratios of Major Private Companies – Operational Basis (FY 2012) (1/3)
Operating Margin
%
Net Margin
100
50
a2
0
b2
a3
a4
b3
b4
-50
-100
-a1
-b1
Company 1
Company 2
Company 3
Company 4
• Company 4 recorded operating margin of a4%, higher than that of Company 3, Company 2 and company 1 which
recorded operating margin of a3%, a2% and –a1% respectively
• Net margin was highest for Company 3 at b3%%, followed by Company 4 which recorded a net margin of b4%
• Company 1 which recorded a negative net margin of a1% had the lowest net margin amongst its peers
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12. Private: Foreign Company – Company 1
(1/5)
Company Information
Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Mumbai
Products and Services
Head Office
Products/Services
Key People
Name
Designation
Person 1
Director
Person 2
Director
Person 3
Director
CORONARY STENTS MARKET IN INDIA 2013.PPT
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13. Private: Foreign Company – Company 1
(2/5)
Shareholders of the Company as on 27/06/2013
Name
No. of Shares held
Ownership Structure
Foreign Holdings
100.00%
CORONARY STENTS MARKET IN INDIA 2013.PPT
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14. Private: Foreign Company – Company 1
(3/5)
Financial Snapshot
Total Income
Key Ratios
Net Profit / Loss
Particulars
INR bn
30
INR bn
a2
b2
25
5
c2
0
20
-5
15
d1
10
-15
c1
5
a1
2009
d2
2010
2011
b1
2008
0
-10
-20
-25
Financial Summary
y-o-y change
(2011-10)
2011
2010
2009
2008
Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets
Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)
• Company earned a net profit of INR XX mn in FY 20XX, as
compared to net profit of INR Y mn in FY 20YY
Liquidity Ratios
• It reported total Income of INR XX mn in FY 20XX,
registering an increase of X per cent over FY 20YY
Leverage Ratios
• It earned an operating margin of X.X per cent in FY 20XX
an increase of X.X percentage points over FY 20YY
• The company reported debt to equity ratio of X.XX in FY
20XX, an increase of X.X per cent over FY 20YY
Current Ratio
Cash Ratio
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio
Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved
CORONARY STENTS MARKET IN INDIA 2013.PPT
Decline
14

15. Private: Foreign Company – Company 1
(4/5)
Business Highlights
Description
News
Overview
• Company 1 operates in the Segment 1, Segment 2, segment 3 and Segment 4
• It was previously the domestic formulations business of Company Y and was renamed as
Company 1 after it was acquired by Company Z in 20--
Manufacturing Facility
• It has a formulation facility at City 1, State 1 where a Product A is manufactured
• However, coronary stents sold by the company in India are manufactured by various
subsidiaries of the parent company, company Z
Coronary Stents Products
• A number of models of coronary stents from the company are available in India
• ‘Model 1’ Carotid Stent System and ‘Model 2’ Coronary Stent marketed by the company
are manufactured by Company A, City 2, Country 2
• ‘Model 3’ Coronary Stent System and ‘Model 4’ series are manufactured by Company B,
City 3, Country 3
• ‘Model 5’ Stent System is manufactured by Company C in its manufacturing facility at City
4, Country 4
• Everolimus Eluting ‘Model 6’, ‘Model 7’, ‘Model 8’, ‘Model 9’, ‘Model 10’ and ‘Model 11’
are manufactured by Company B
• ‘Model 12’ stent system are manufactured by Company D, Country 5
CORONARY STENTS MARKET IN INDIA 2013.PPT
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16. Private: Foreign Company – Company 1 – SWOT
Analysis (5/5)
S
W
O
T
CORONARY STENTS MARKET IN INDIA 2013.PPT
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17. Buyer Snapshot: List of Top 10 Buyers of Coronary Stents
Top 10 hospitals buying coronary stents in India
Hospital Name
Hospital
Logo
Hospital
Chain
Ownership
Type
Angioplasty Procedures Per
Month
Hospital 1
Hospital 2
Hospital 3
Hospital 4
Hospital 5
Hospital 6
Hospital 7
Hospital 8
Hospital 9
Hospital 10
CORONARY STENTS MARKET IN INDIA 2013.PPT
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18. Public: Domestic Company – Hospital 1
(1/3)
Company Information
Head Office and Hospital Network– India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Products and Services
Category
Head Office
Hospital Network
Products/Services
Key People
Name
Designation
Person 1
President (Institute Body)
Person 2
Dean
Person 3
Director
Person 4
Medical Superintendent
CORONARY STENTS MARKET IN INDIA 2013.PPT
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19. Public: Domestic Company – Hospital 1
(2/3)
Business Highlights
Description
News
Overview
• Is a group of ‘m’ hospitals across India
• Has ‘p’ teaching departments and centers
• Has a total of ‘x’ beds
• There are ‘y’ doctors and ‘z’ nurses
Facilities
• Leader in Therapy 1
• It has India's first and only Therapy A training centre
• It is a pioneer of Type A surgeries in India, particularly System 1 for Therapy 2, and
System 2
Future Plans
• Expansion plans of the hospital chain were recently approved by the Body 1
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20. Public: Domestic Company – Hospital 1
(3/3)
Parameter
Hospital Indicators
Total cardiac patients per month
Angioplasties per month
Stent providers
Purchase decision factors
Stents procurement
Contact Details
Centralized/ Hospital level
HOD/ Technician/ Procurement
Procedure/ process involved in procurement
Contact details purchase
Stent Types
Overview of Stent Procurement Process
CORONARY STENTS MARKET IN INDIA 2013.PPT
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21. Thank you for the attention
Coronary Stents Market – India report is part of Netscribes’ Healthcare Industry Series.
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