The Indian healthcare sector, is the VC's darling, although the sector, as such, has miles to go. As per Mint campaign supplement, dated 7.4.2008, on occasion of World Health Day (7.4.2008), the healthcare sector in India, is relatively recession free, and may grow by four times in 10 years. In 2007, the sector attracted USD 100 million of VC investment, (around Rs. 400 crores), while in 2006, it was USD 41 million. ICICI is bullish about the growth of its new venture, Iven Medicare. While climate change and its impact on health is holding the center stage of various programs, Mumbai is interestingly celebrating this day as a no honking day!
India has 604 districts and a population about 1.02 billion, As per The Hindu, dated 19.3.2008, p.no. 16, the no. of registered allopaths with MCI is 6,83,582, the population to doctor ratio is 1:1634; there are also more than 6 lakh RMPs and with other qualifications like BAMS, BUMS, etc. There are 271 medical colleges (138 Govt., and 133 private sector). The MBBS intake capacity is 31,172 and PG seats available are 11,005. The hospital bed to population ratio is 1:3500, while it is 5:1000 in developed economies. So pharma marketers are possibly addressing a market of about 13 odd lakhs doctors who influence the consumption of prescription products.
The disease patterns
Cancer: In 1975 - 76, the National Cancer Program was started in India. Every year 8 lakh cases of cancer are detected, and 3 lakh deaths occur due to cancer. By 2026, the no. of cancer cases is expected to go to about 1.4 million.
TB: in the world and India: It is estimated that one third of the world's population is infected by TB. The WHO estimate is that 9.2 million were infected by TB in 2006, but only 5.1 million were diagnosed. So for every 5 cases of TB detected, 4 went undetected. India, China, Indonesia, South Africa, and Nigeria had most of the cases. 7 lakh HIV positive people were diagnosed with TB.
Infections: If one glances, at the top 50 brands (as per ORG IMS, Feb 2008), one will see that Corex (as usual) holds the top 1 position followed by Voveran. And what strikes the pharma marketer is the large no. of antibiotics particularly cephalosporins that are the topper brands. This indicates that a large component of the market is still anti-infectives. With India becoming warmer, the climate change is expected to encourage the spread of infections.
Nutritional deficits: India's economy, plagued with rising inflation (which is now a global phenomenon), will further deepen the problems of nutritional deficits particularly in semi urban and rural India. Already anemia is a major health problem in India.
Lifestyle diseases: While the developed economies are grappling mainly with the battle of plenty (obesity is a major health problem in the advanced West), India is grappling with different lifestyle diseases due to problems like smoking. The other very striking thing about the top pharma brands in Indian market are that they belong to the lifestyle segment. In fact, the third largest brand is a human insulin brand, and new off-the-block company in the branded formulations market - Biocon - is growing at dizzying rates (over 50%). Atorvastatin brands are also doing very well in India, and are among the topper Indian pharma brands. Women's diseases including menopause are seeing a lot of growth opportunity. Click here for a nice review on the lifestyle segment of the Indian pharma market (diseases like diabesity in urban India).
The rural market beckons!!
The Union Budget 2008 - 2009 has given a thrust to the healthcare sector, particularly the rural healthcare segment. And current estimates are that the rural sector will be the engine of growth for the healthcare sector.
The CRAMS sector is going places
With the acquisition of Draxis by Delhi based, Jupiter Biosciences the spotlight is on the CRAMS sector (contract research and manufacturing services) of the healthcare industry.
25% of the Indian pharma market is gastrointestinal-hepatic...
While approximately 25% of the total value of the Indian pharma market is anti-infectives, the next 25% is gastrointestinal - hepatic related, including electrolytes. Management of acid-peptic diseases including heartburn continues to be big business. Liv 52 is the fourth largest Indian pharma brand (ORG Feb 2008).
India: The world's generic basket
Undoubtedly, having an estimated 100 US FDA approved manufacturing plants, and offering value-for-money generic products, India is the world's generic basket (the chance for replicating this success in the biogeneric segment is also bright). The successes in generic product production and marketing, and CRAMS is only because of Indian entrepreneurship and availability of talented people. However, this is leading to a very competitive and...
commoditized pharma marketplace in India.
The large no. of manufacturers and marketers is leading to a high degree of commoditization in the Indian pharma marketplace. There are newer and newer players coming in to the Indian pharma industry, for eg., Atlas the bicycle manufacturer has expanded to the pharma sector, by setting up a world class manufacturing unit. Further, it is becoming a trend for many MRs to start their own propaganda cum distribution model of pharma business.
I got the above image from HERE, this Govt. website also gives further details about the Indian healthcare sector. Kindly scroll down to read other articles (including by clicking on older posts).