eHEALTH-Mar-2011-[8-10]-The Needle of Diagnostics

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The Needle of Diagnostics Powered by technology, dominated by corporates and driven by new-age consumers, the diagnostic laboratory market in India has taken a giant leap forward By Dhirendra Pratap Singh

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n the US, about 20 years back, there were at least 30 thousands laboratories, but today there are 4-5 major chains of organised laboratories, which constitute around 30 percent of the total market of pathological testing. Now the Indian market dynamics is also changing drastically the way US did. With more than 3000 labs and 85 percent

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of the total market share currently, the unorganised laboratories are growing at the rate of 10-15 percent, while the organised corporate chains having less than 15 percent share of the total market are growing at a much faster rate at 25-30 percent, annually. Today, in India more than 25,000 clinical laboratories carry out around 11

> www.ehealthonline.org > March 2011

lakh tests daily. These range from routine examinations of blood sugar and cholesterol levels to complicated hormonal assays and immunological investigations. The growing middle class population, coupled with rising demand for affordable health insurance for an ageing population, is expected to translate into an exponential growth driver for diagnostic laboratories.

The International Diabetes Federation estimates that the number of diabetic patients in India has more than doubled from 19 million in 1995 to over 41 million now. Cardiovascular diseases (CVD), cancer and stroke account for 53 percent of all deaths and 44 percent of disability-adjusted life years. Thus, the Indian population is graduating from cheaper to treat ‘infectious diseases’ to the more complex and expensive ‘lifestyle diseases’ which require greater diagnostic and therapy interventions. Lifestyle diseases are set to assume a greater share of the healthcare market. The laboratory plays a central role in healthcare. By one estimate, 70 percent of all medical decisions are based on laboratory results. And now all the laboratories strive to use the latest in technology. However, technology is a mean to an end and not the end in itself. Optimising performance means that workflow and technology are integrated to yield an operation that best meets the clinical needs and financial goals of the organisation. High quality at low cost is another concern. Updates in technology must lower capital and operating costs and also improve turnaround time.

Market The fast growing diagnostic sector opens several avenues for partnership between the Indian and International diagnostic companies. There is huge potential in the clinical research and trials market by combining the unique strengths of Indian and US companies, US companies are the leader in pharmaceuticals and biologics research and development. Indian companies can leverage their extensive expertise in life sciences, the large number of CAP accredited labs in India and the huge patient base to collaborate with US companies in organising large scale and complex clinical trials at low costs. There is good potential to develop training and accreditation programmes for the Indian market. There is a need to design cheap, high quality equipment for Indian markets and device creative financing options and low cost, effective solutions for the Indian market.

Do You Know? Life expectancy has shot up in India, from 23 at the turn of the 20th century to 65 years, while death rates have come down—from 25 per thousand to eight. The Indian healthcare market is on an unprecedented high at 16 per cent year on year. From ` 1, 02,600 crore in 2005, it now clocks `2, 00,000 crore and is projected to reach ` 3, 00,000 crore by 2012. The healthcare industry employs over four million people, making it one of the largest service industries in the economy, reports a study by ASSOCHAM and Yes Bank.

The Indian population is graduating from cheaper to treat infectious diseases to more complex and expensive lifestyle diseases, which require greater diagnostic and therapy interventions Unorganised Sector in India Major branded players in the Indian diagnostics market are Super Religare Laboratories, Dr Lal Pathlabs, Quest Diagnostics, Thyrocare and Metropolis. Super Religare Laboratories is servicing nearly 1550 hospitals/path labs along with its subsidiary Piramal Diagnostic Services Private Limited, offering a comprehensive range of over 3,300 diagnostic tests, from the routine to the highly specialised tests. Dr Lal Pathlabs has 65 laboratories at present in India and it is looking to add another 35 this year. The company has decided to invest `150 crore this year on acquisitions in India and abroad. The company is also looking to acquire in Middle East, Bangladesh, Sri Lanka and other South Asian nations. Quest Diagnostics has operations in the US, India, UK, Brazil, Puerto Rico, Mexico and Ireland, it is a Fortune 500 company. In India, it has set up facility in Gurgaon, Haryana. It has recently launched a wide array of testing for diagnosing and monitoring blood cancer in India. Thyrocare is one among the top laboratory brands in India. It is moving at 40 percent annually. Another major player Metropolis has created an Indian Associa-

tion of Pathology Labs in view to represent the industry to the government under the umbrella structure of CII (Confederation of Indian Industry). The company has been into the process of promoting three more tests viz. He4 (Ovarian Marker – Gynecological), Hair DX (Genetic hair loss – Dermatological), DNA paternity test, for the Indian citizens.

Opportunities and Challenges Indian healthcare market is large but still fragmented and underserved. India is one of fastest growing and strongest global economies with about 8 percent growth rate. Our nation has 17 percent

March 2011 < www.ehealthonline.org <

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