India is one of the world's most lucrative healthcare markets, and is expanding rapidly, according to latest findings of a report titled 'Indian Healthcare - New Avenues for Growth'. The Indian healthcare industry estimated at US$ 40 billion in 2010is expected to reach US$ 280 billion by 2020. According to Frost & Sullivan reports, spending on information technology (IT) by Indian healthcare players was estimated at US$ 244 million in 2010 and is expected to grow at 22 per cent a year over the next 10 years. Further, huge private sector investments will significantly contribute to the development of hospital industry, comprising around 80 per cent of the total market, highlighted the RNCOS report, titled 'Indian Hospital Services Market Outlook'.
"India is the first country to have a large number of multinational healthcare providers. There are seven-eight very active MNCs. It opens a whole host of opportunities for us. I see the healthcare sector as one of the biggest business opportunities," as per Terri Bresenham, President and CEO, GE Healthcare India, and MD, Wipro GE Healthcare, India.
India will witness the largest number of mergers and acquisitions (M&A) in the pharmaceutical and healthcare sector, according to consulting firm Grant Thornton. A survey conducted across 100 companies has revealed that a fourth of the respondents were optimistic about acquisitions in the pharmaceutical sector.
The hospital services market represents one of the most lucrative segments of the Indian healthcare industry. On the back of continuously rising demand, the hospital services industry is expected to be worth US$ 81.2 billion by 2015.
The hospital and diagnostic centre in India has attracted foreign direct investment (FDI) worth US$ 1.34 billion, while drugs & pharmaceutical and medical & surgical appliances industry registered FDI worth US$ 9.19 billion and US$ 521.45 million, respectively during April 2000 to March 2012, according to the data provided by Department of Industrial Policy and Promotion (DIPP).
The Indian pharmaceutical market is expected to grow at a compound annual growth rate (CAGR) of 15.3 per cent during 2011-12 to 2013-14, as per a Barclays Capital Equity Research report on India Healthcare & Pharmaceuticals.
Trends and Investments
- India and the US have signed an agreement on collaboration in diabetes Research. The collaboration aims to initiate a health research relationship between the two countries to generate a better understanding of the molecular and biological mechanisms underlying diabetes. This is the eighth agreement between the two countries in the field of health and medicine
- Growth of Indian pharma companies will be driven by the fastest growing molecules in the diabetes, skincare and eye care segment, as per a report by research firm, Credit Suisse. The market share of a drug company is directly related to the number of fast growing molecules in the company's pipeline, said the report
- Apollo Hospitals Enterprise Ltd will buy out partner Imperial Hospital's stake in a Bengaluru-based hospital-cum-research facility for around Rs 100 crore (US$ 17.86 million). "We have entered into an agreement to buy 100 per cent stakes of the Bengaluru facility, in which we earlier had 51 per cent," according to Suneeta Reddy, Joint Managing Director, Apollo
- Hyderabad-based company Dr Reddy's Laboratories has launched over-the-counter Lansoprazole capsules in the US. The tablet is the bioequivalent version of Novartis Consumer Health's Prevacid® 24 HR capsule
- Philips plans to develop healthcare products for rural India-a shift away from its exports-led strategy of the previous years. Going forward, the quantum of products developed for the Indian markets will go up "exponentially" and the team "will churn out more products for rural India," as per Srinivas Prasad, Head of Healthcare at Philips Innovation Centre. The firm is addressing a US$ 5 billion market for healthcare products in India
- Onco Therapies, a subsidiary of Strides Arcolab, has received US Food and Drug Administration (FDA) approval for anti-cancer Cisplatin injection. The US market for generic Cisplatin is about US$ 10 million, according to IMS data
- The Bengaluru-based Narayana Hrudayalaya Hospitals , which currently has 14 hospitals with 6,000 beds across seven States, plans to invest Rs 5,000 crore (US$ 892.86 million) on setting up a chain of 100 low-cost specialty hospitals and at least three more health cities in the country
- Apollo Hospitals Group will invest Rs 1,500 crore (US$ 267.86 million) on increasing the number of its beds to nearly 11,500 by March 2014, according to Dr Prathap Reddy, Founder-Chairman of the hospital chain. The healthcare group had added 800 beds in 2011 in its existing 56 hospitals, which now have 9,000 beds, said Reddy
- Abbott Laboratories plans to establish its research and development (R&D) centre in India in collaboration with Syngene, a contract research subsidiary of Biocon Ltd, to develop nutrition products in India. The Indian nutrition market is estimated to be about Rs 1,500 crore (US$ 267.86 million), according to an estimate by Motilal Oswal
- MSD plans to set up a laboratory for developing vaccines with an investment of Rs 750 crore (US$ 133.93 million). The lab is set to come up at Delhi's Jamia Millia Islamia University campus and will focus on developing vaccines pertaining to various diseases prevalent in tropical countries
- Piramal Healthcare Ltd (PHL) has announced an agreement to acquire worldwide rights to the molecular imaging research and development (R&D) portfolio of Bayer Pharma AG. PHL's newly created subsidiary, Piramal Imaging SA, acquired the portfolio, including rights to florbetaben, a positron emission tomography (PET) trace
- With vast amount of medical data generated each year, many healthcare small and medium-sized enterprises (SMEs) in India are opting for cloud technology to store, access and share data, to reduce operational costs and increase efficiency. e-health is a part of Visakhapatnam-based SevenHills Healthcare Pvt Ltd, a web-enabled hospital management solution (HMS) that provides end-to-end solutions to medical players, where doctors and staff can access the stored data from anywhere through the web