Outlook 2007

Product Code SCR00019
Publication Date January 2006
Publisher Scrip Reports
Product Type Report
Pages
ISBN Number not applicable
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Outlook 2007

India's large and expanding population, rapidly growing economy and much needed structural reforms are having a significant impact on the development of the healthcare market.

There is a greater spread of consumer purchasing power as the middleincome group expands, and government support for private enterprise within the healthcare sector is encouraging expansion of service providers and the development of innovative health products to address country specific needs.

Due to the country's low GDP per capita, the mass market is price-sensitive and tends to follow a high volume low margin model. The exception is hightechnology equipment, where in some cases lack of competition allows higher margins. Once in the market, advantage can be gained from indigenising a product and using the base as a launch pad into the rest of Asia.

The demand for technology is strong in both the public and private sector.

The private tertiary care sector currently offers an attractive market benefiting from efficient procurement methods and fewer cash-flow constraints. Currently only the top third of income earners can afford to pay for healthcare, but the number of people buying healthcare insurance is growing.

Spending on healthcare is set to increase with a rise in chronic, lifestyle and age-related diseases, which are typically more expensive to treat than infectious diseases. The cardiovascular, asthma and cancer segments are therefore expected to grow in importance.

The smallest segment in India's healthcare industry, the in vitro diagnostics (IVD) business, is doing well despite comparatively less government interest in this sector.

A trend towards accreditation is boosting the interest in imported kits and there is a growing interest in automated systems, and a demand for new improved tests and user-friendly products. Strongest demand is in the infectious disease, genetic disorder, cancer and pharmacogenetics segments.

Not all IVD segments are growing at the same rate. Molecular diagnostics has strong potential because clinicians perceive a good cost-benefit ratio associated with these products.

Companies and private hospitals are tapping the telemedicine, e-health and mobile health markets. These segments are crucial to achieving universal healthcare in a country where 70% of the population live in underdeveloped or inaccessible areas. There is also an increasing demand to provide distant diagnostic services for overburdened hospitals in the US and the UK.

International demand in the form of medical tourism is driving the market for high-end equipment and procedures. This market is growing rapidly and being targeted by both the private sector and state governments, which are tailoring facilities, offerings and organisational bodies to respond to the demand.

Companies that are established in the Indian market or planning to enter the market are predominately positive. Once the right partner and a good workforce have been secured, business seems to be brisk and relatively problem free.

Concerns about intellectual property protection are not great for makers of high-end equipment because domestic manufacturing capabilities are not sufficiently developed to present a major challenge. However, companies have several IP protection measures. These are supported by the legal system, which is considered to be largely effective.

Bureaucracy and corruption are burdens that hinder medical device market development in the public sector and where professional assistance is strongly advised.

Challenges for smaller international companies include investing time and money to conduct market research, the physical distances between an overseas operational base and the distributors and end consumers in India, understanding the business and social culture, infrastructure inadequacies, and building an attainable business plan.

Contents

  • Chapter 1 The Pharma Market
    • 1.1 Overview
    • 1.2 Products
    • 1.3 Companies to Watch
    • 1.4 Conclusion
    • 1.5 References
  • Chapter 2 Emerging Markets
    • 2.1 China
    • 2.2 India
    • 2.3 Russia
    • 2.4 Latin America
    • 2.5 Central and Eastern Europe
    • 2.6 References
  • Chapter 3 New Horizons for Generics
    • 3.1 Growth
    • 3.2 Biogenerics
    • 3.3 Emerging Markets
    • 3.4 Compulsory Licencing
  • Chapter 4 Regulatory Developments
    • 4.1 The Innovative Medicines Initiative
    • 4.2 Advanced Therapies
    • 4.3 Medicines for Children
    • 4.4 Drug Safety in The US
    • 4.5 Risk Evaluation
    • 4.6 Pdufa
    • 4.7 References
  • Chapter 5 Legal Action
    • 5.1 Patent Losses for Big Pharma
    • 5.2 Drive for Cost Effectiveness Proves Costly
    • 5.3 Ongoing Woes for Merck & Co
  • Chapter 6 Drug Development
    • 6.1 Failure to Translate Successes
    • 6.2 Company Pipelines
    • 6.3 References
  • Chapter 7 Clinical Trials Outlook
    • 7.1 Global Picture
    • 7.2 Outsourcing
    • 7.3 Paediatric Legislation
    • 7.4 Attitudes towards Clinical Trials
    • 7.5 Phase Iv Trials
    • 7.6 Critical Path Initiative (Cpi)
    • 7.7 References Table E.1.1 Top 15 Countries by Share of Gdp Spent on Healthcare
    • List of Tables
      • Table 1.1 Global Pharmaceutical Sales up to 2007
      • Table 1.2 Global Pharma Sales by Region, 2005
      • Table 1.3 Areas of Expected Product Growth, Therapeutic and Regional
      • Table 4.1 The Emea's List of Cardiology Products for Which Paediatric Indications and Formulations Are Required
      • Table 4.2 The Fda's Critical Path Initiative Opportunities List
      • Table 5.1 US Patent Expiries in 2007 Figure 6.1 Development Pipelines of The Top 5 Pharmaceutical Companies