October 2013

Indian Medical Technology
Industry
Strictly Private
and Confidential
3 October 2013
www.pwc.com

1 Indian Medical Technology Industry 1
2 Trends Driving Growth in Indian Medical Technology Industry 4
3 Indian Medical Technology Industry : The Future 11
Page Section Overview
Table of Contents
PwC
3 October 2013
Section 1
Indian Medical Technology Industry
1
Indian Medical Technology Industry • October 2013
PwC
3 October 2013
India Medtech market is poised for major growth
India Medtech Market Growth
1

• 23 out of the 25 top medical device firms have established at a minimum a direct sales and
marketing presence in India
• Higher-end medical devices such as orthopedics and other implantables are projected to grow
at 19% CAGR until 2015
2

1. PRTM Emerging Markets Supply Chain Survey, MDISCC 2011
2. EPSICOM India Medical Device Report, 2010
$890
$1,188
$1,444
$1,626
$1,904
$1,988
$2,320
$2,695
$3,135
$3,650
$4,245
$4,844
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
S
a
l
e
s

(
$
M
)

Consumables Diagnostic Imaging Dental Products Orthopaedics & Implantables Others
“Plans to gain more share of the Indian health care market
and take advantage of the country's patient pay-based
health care system” – Medtronic CEO
16% CAGR
(forecast)
18% CAGR (actual)
2
Indian Medical Technology Industry • October 2013
Section 1 – Indian Medical Technology Industry
PwC
3 October 2013
India Medtech growth– Top three major trends driving growth projections
1 2 3 4 5
Governmnet subsidies/tax breaks
Better IP protection
Introduction of new low cost products
Increased awareness about products
Penetration into rural markets
Increased Government healthcare spending
Stable regulatory enironments
Improvement in healthcare inf rastructure
Increasing health insurance coverage
Rapidly growing middle class
Average Companies Score
India Medtech Growth Trends1
Least Likely Most Likely
3
Indian Medical Technology Industry • October 2013
Section 1 – Indian Medical Technology Industry
PwC
3 October 2013
Section 2
Trends Driving Growth in Indian Medical
Technology Industry
4
Indian Medical Technology Industry • October 2013
PwC
3 October 2013
Regulation Financing Innovation
Collaboration Investments
Medical Technology Growth is driven by profound changes in the Industry
Environment in India
5
Section 2 – Trends Driving Growth in Indian Medical Technology Industry
Indian Medical Technology Industry • October 2013
PwC
3 October 2013
Regulation
Regulatory
Authority
FDI
Clinical
Trials
Pricing Compliance
Regulatory Environment is Seeing Major Changes which will Impact the
Medical Technology Industry
6
Section 2 – Trends Driving Growth in Indian Medical Technology Industry
Indian Medical Technology Industry • October 2013
PwC
3 October 2013
Financing
Government
Health
Insurance
RSBY, State
Government
Social
Insurance
CGHS, ESIC
Private
Health
Insurance
Individual,
Group
Employer
Provided
Railways,
Armed
Forces
A range of Healthcare Financing Mechanisms are Contributing to the
Growth of the Medical Technology Industry
7
Section 2 – Trends Driving Growth in Indian Medical Technology Industry
Indian Medical Technology Industry • October 2013
PwC
3 October 2013
Innovation
Product
Low Cost Breakthrough
Business
Model
PPP
Medical Technology Industry in India is characterized by Innovation
across both Product and Business Model dimensions
8
Section 2 – Trends Driving Growth in Indian Medical Technology Industry
Indian Medical Technology Industry • October 2013
PwC
3 October 2013
Collaboration
Industry-
Academics
Industry-
Research
Industry-
Industry
New collaboration Models are emerging to aid Medical Technology
Innovation in India
9
Section 2 – Trends Driving Growth in Indian Medical Technology Industry
Indian Medical Technology Industry • October 2013
PwC
3 October 2013
Investments
Strategic
R&D Manufacturing Channels
Private Equity
Established Startups
Indian Medical Technology Industry is seeing surge in Investments from
both Strategic Investors and Private Equity Funds
10
Section 2 – Trends Driving Growth in Indian Medical Technology Industry
Indian Medical Technology Industry • October 2013
PwC
3 October 2013
Section 3
Indian Medical Technology Industry : The
Future
11
Indian Medical Technology Industry • October 2013
PwC
3 October 2013
Companies That develop operational capabilities to drive India specific
product and business model innovation are better positioned to win
Establish a Low-cost
Manufacturing Network

1
Customize Commercial
Operations

3
Establish India Specific
R&D Operations

2
• Allows to compete on price
• Enable companies to penetrate all
market segments
• Combines local strengths with global
model
• Focus on creating market appropriate
products for India (and other
emerging markets)
• Align India R&D with global R&D
operating model
• Evolving healthcare ecosystem requires
“entrepreneurial” approach to
commercialization
• Entering new market segments in India
will require redesign of commercial
operations
12
Indian Medical Technology Industry • October 2013
Section 3 – Indian Medical Technology Industry : The Future
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