DIAGNOSTIC MARKET IN INDIA

The USD 500 million domestic pathology industry growing over the last five years at an estimated Compound Annual Growth Rate (CAGR) of 20 per cent per annum is on the verge of a major boom, Falaknaaz Syed reports.

Industry experts cite emergence of the country as a preferred global R&D hub, expansion of the clinical trials market, opening up of the health insurance industry for privatisation, consolidation amongst organised players, increased health awareness and quality consciousness in urban India resulting in an increased test prescription rate and Public-Private Partnerships (PPP) as the major reasons for the boom.

The pathology market is currently 2.5 per cent of the overall healthcare delivery market. There are 40,000 independent path labs in the country and the industry is highly competitive and price-driven with kickbacks and business referral payments in the absence of a regulatory body. Around 70 per cent of treatment decisions in the country are based on lab results.

Speaking about India as a preferred destination for outsourcing clinical trials, Dr Arvind Lal, Chairman and Managing Director of Dr Lal PathLabs, New Delhi , said, " India offers a diverse population and therefore a varied gene pool. Also patient recruitment and retention is easier, better and faster than in the Western countries. International drug companies save 50 per cent in clinical trials cost in India and so prefer outsourcing clinical trials to the country. A major evidence is that the number of Contract Research Organisations (CROs) based in India have increased four-fold between 2001 and 2003. By 2010, two million patients are expected for clinical trials in India ; translating into 20 million tests."

Also 100 of the Fortune 500 companies have set up R&D facilities in the country, 70 MNCs including Delphi , Eli Lilly, GE, HP, Heinz and DaimlerChrysler have R&D facilities in the country.

Source: expresshealthcaremgmt.com