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
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. 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. 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. 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. 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. 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: natasham@netscribes.com E-Mail: subhashr@netscribes.com
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MEDICAL DIAGNOSTICS – INDIA.PPT 9
