Life Sciences And Medical Devices Sector In India: Highlights

(Sector Highlights By Frost And Sullivan Prepared For Panel Discussion On “Right Opportunities And Best Practices In BRIC Markets”)

Even as the Government attracts FDI in healthcare, red tape and bureaucratic hurdles makes investors tread with caution

Per capita spending in healthcare among the least compared to other BRIC nations

Unorganized Sector and Retail Take the Top Spots for Growth Potential

Massive uptake of medical devices and consumables as Tier 2 & 3 cities improve hospital infrastructure and innovative delivery models are put in place

Impetus on customized / localized medical technology products

Private equity investment in healthcare delivery, which is boosted by private health insurance adoption and hence service utilization

In the diagnostic services business, 80% of provision is in the unorganized sector which represents a huge opportunity

Similarly 90% of retail Pharma is unorganized which is a huge opportunity for organised players

Healthcare Divide and Unequal Distribution of Institutions Supporting Service Delivery

Private sector provides 70 - 75% of total healthcare in the country, rest is provided by Government

Urban rural divide is high with most private healthcare projects being carried out only in tier 1 cities and metros

Inadequate and inconsistent Government funding, inadequate infrastructure support from Government

Lack of adoption of quality standards. Hospitals in tier 2 & 3 cities are not focused on healthcare

Lack of distinct status for the medical devices industry along with lack of quality standards

Compulsory license by government for low cost pharma products to reduce the cost of treatment

Healthcare and Consumer Goods Supplier– able to reach masses by way of community programs, health and hygiene campaign and able to reach bottom of pyramid and created huge brand loyalty

Leading Skin and Wound Care Manufacturer – quality product, innovation is the key message, training and education way of market building exercise created huge brand loyalty amongst healthcare providers

International Pharma and Diagnostics Supplier – Oncology drugs, strong brand reliability amongst doctors and hospitals by way of market building exercise, reliable products, quick service and strong distribution network