medical diagnostics - india - sample

Medical Diagnostics - India

April 2009

2MEDICAL DIAGNOSTICS – INDIA.PPT

SAMPLE

Executive Summary

Market

Drivers &

Challenges

Rules and

Regulations

Competition

�Medical Diagnostic accounts for x% of the healthcare industry in India

�Diagnostics market comprises of

– 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

�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

– Critical - A

– 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

�Foreign players (like U, V, W) account for a% share in diagnostic equipment market

– Some of the major domestic manufacturers are X,Y,Z

�Drivers: Increase in lifestyle-related diseases, changing demographics, growth in medical

outsourcing, medical tourism, nascent but growing medical insurance, rising PE/VC investments

�Challenges: Difference in import duty on diagnostic kits for public and private sector and Lack of

accreditation/certification of diagnostic centers


•Market Overview

•Drivers & Challenges

•Rules & Regulations for

Manufacturers/Suppliers

•Competition

•Key Developments


SAMPLE

Indian diagnostics market is witnessing significant growth with

major contribution from the In-Vitro Diagnostic (IVD) segment

• Indian diagnostic market comprises of

� Diagnostic test services market

� Diagnostic products/instruments market

• Diagnostic market accounts for x% of healthcare sector

• India currently has over A hospitals and B diagnostic

laboratories

• About c% of the treatments in India are based on lab

diagnostic tests

Market Overview Diagnostic Test Services Market

Source:

g%

Microbiology

h%

Coagulation

Immunology

c%

Haematology

d% Critical care

e%

Urine Routine

f%

Others

a%

BioChemistry

b%0

5

10

15

20

U

2006

V

2007

W

2008

b%

INR bn

IVD Instruments & Reagent MarketIVD Test Segments (2008)

0

10

20

30

40

2006

Y

2007

Z

2008

a%INR bn

X

Market size estimation is difficult as diagnostic market is highly unorganized

In 2008, IVD

services market

was INR XX bn


Drivers & Challenges

Increase in lifestyle-related diseases

Changing demographics

Rising PE/VC investments

Increasing penetration of medical

insurance

Rapid growth of India as a destination

for medical tourism

Growth in medical outsourcing

Drivers

Lack of accreditation/certification of

diagnostic centers

Difference in import duty on

diagnostic kits for public and private

sector

Challenges


SAMPLE

Organized pathlabs are rapidly expanding using the hub and

spoke model, including small, independent labs in the network

CC

Reference

Lab

CCCC CC

Satellite

LabSatellite

Lab

CC

CC CC

CC

Diagnostic Testing Market Structure Hub and Spoke Model

• Highly fragmented with ~X laboratories:

� Hospitals: a%

� Independent labs: b%

• Among the labs in India

� Automated – u%

� Semi - Automated – v%

� Manual – w%

• Organized players account for z% of market and

expanding with ‘hub and spoke’ model:

� Reference labs act as regional hubs and are usually located

in large metros

� Collection centres are located in hospitals, nursing homes,

pathology labs, doctor’s clinics etc.

� Satellite labs and collection centres are either owned or

franchised

• As organized players grows their share, small,

independent labs are:

� Becoming franchisees in the hub and spoke model

� Partnering with large chains on referral basis

� Getting acquired by large chains, which lowers the cost of

expansion and start-up time for the latter

• Reference labs: Hub with comprehensive or specialized

testing capability

• Satellite labs: Limited testing capability; ‘feed’ reference labs

• Collection centres (CC): Collect samples for forwarding to

either a satellite lab or reference lab

• A variation in this model is the absence of satellite labs and

the existence of only reference labs and collection centres

Source:


SAMPLE

Manufacturers – IVD Products/Instruments Market

•The IVD products market in India is primarily

dominated by foreign companies

•Global IVD companies like A,B,C,D have strong

presence in the Indian market

•Domestic players have forayed into the market

and are establishing themselves by producing

cost effective and quality goods

•a% of diagnostic medical equipment and

supplies is imported

•Low-cost reagent kits are being imported from

X,Y and Z

Players in the market IVD Products Market Share (2008)

Foreign Players

b%

Domestic Players

a%

Source:


SAMPLE

Major Players – Diagnostic Test Services Market (1/2)

Note: This list is not exhaustiveSource:

• Established an international alliance with U for testing

• Planning to set up -- labs and -- collection centers by

20--

• Expand operations in southern and western regions

investing INR X mn

• Planning to invest INR Z mn in brand building

• Started in 19--

• A labs and B sample collection centers

• Accreditation: NABL, CAP

Y

• Growing inorganically

• It is looking at overseas expansion as well as

outsourcing opportunities

• Plans on increasing their portfolio to X more labs

• Targeted revenue of INR X bn by 20--

• In 20--, acquired two labs in North India and a majority

stake in Bangalore based YY

• Started in 19--

• U laboratories across V cities globally, W

laboratories in India, X collection centers

• Capability to carry over A routine investigations with

over B technologies - e.g. biochip, DNA sequencing,

pathology, radiology

• ICICI Ventures owns a% of the company

• Accreditation: CAP, NABL

Z

• Entered into a JV with V to set up a diagnostic

laboratory in Hyderabad at an investment of USD YY

mn

• Started in 19--

• Diagnostic facilities in their subsidiary U

• Facilities allow for investigation in Biochemistry,

Haematology, Clinical Pathology, Microbiology, X-

ray, Ultrasound with Color Doppler, ECG, Echo

Cardiography and Treadmill

X

Business OutlookOverviewCompany


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