October 07, 2009 16:08 ET

Still Opportunity in India for Diagnostic Companies, Says Report

NEW YORK, NY--(Marketwire - October 7, 2009) - Diagnostic companies seeking new growth opportunities in a recessionary economy may want to consider the $350 million Indian in vitro diagnostics market, according to a new report, "Who is Who in Clinical Diagnostics in India," from healthcare market research publisher Kalorama Information and McEvoy and Farmer. Despite poor economic news elsewhere, demographics in India are fueling a robust private hospital industry, which in turn is driving testing markets.

While India's growth rate is not in the double digits as predicted earlier this decade, quarterly 2009 numbers have been positive and the IMF projects India's growth rate to be 5.8% this year -- good news in a time when most developed countries are showing negative growth. India's 1.14 billion population is increasingly migrating to urban centers where there is better ability to deliver healthcare. A middle class of approximately 200 million has emerged around the cities of Delhi, Mumbai and the southern corridor of Hyderabad and Chennai, and these urban middle-class consumers are demanding quality healthcare services. Private hospitals, insurance companies and laboratories have sprung up to fill the fast-rising demand.

"Growth in the Indian IVD market is fueled by private healthcare dollars," said Bruce Carlson, publisher of Kalorama Information. "Private hospitals are expanding through acquisitions and the building of new facilities, and hospitals will drive testing for the increased patient population."

While the Indian government spends about 1% of GDP on healthcare, or $4 per person, private healthcare spending is four to five times that amount. Although only a small percentage of Indians are covered by health insurance, private insurance plans are expanding, facilitating the use of medical services without payment up-front. Private laboratory chains are thriving. SRL Ranbaxy has significant processing labs in Mumbai, Delhi and other major cities and collects samples from 350 towns countrywide. Dr Lal Path Labs has 27 labs and collects from 250 towns. Though foreign companies have not entered the private lab market in a significant way here, Quest recently opened a large facility. Siemens, Abbott and Beckman Coulter are among the other companies with significant offices in India, and other foreign companies are expected. Kalorama Information, working closely with the IVD market research firm McEvoy and Farmer, projects the Indian IVD market will grow at 15% per year as a result of this private healthcare expansion.

"Who is Who in Clinical Diagnostics in India," developed by McEvoy and Farmer and Kalorama Information, summarizes the market for testing in India and includes a directory of diagnostic manufacturers operating in India, as well key Indian IVD distributors and the products they distribute. For more information, please visit Kalorama Information at: http://www.kaloramainformation.com/redirect.asp?progid=76150&productid=2254015.

About Kalorama Information

Kalorama Information supplies the latest in independent market research in the life sciences, as well as a full range of custom research services. We routinely assist the media with healthcare topics. Follow us at http://twitter.com/KaloramaInfo and LinkedIn (www.linkedin.com/groups?gid=2177845&trk=hb_side_g).

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