An analysis of the life science tools market in India and the market opportunity. Please note this is a proprietary research on my views in a series of srinivas sashidhar's healthcare instinct. Your views and comments are welcome. I am also open to individual assignments on market consulting in healthcare related markets. You can follow my blog at https://kchsashi.blogspot.com/

1. Opportunity Analysis of
Life Science Tools
Market in India
By
K. Srinivas Sashidhar

2. Indian Economy and Healthcare Scenario
160
280
0
100
200
300
2017 2020
Indian Healthcare Market Size ($ Bn)
 India is the 7th largest economy Between (France – 6th and
Italy – 8th ). India spends only 0.6% of GDP on R&D when
compared to US (2.8), China (2.1), Israel (4.3) and Korea
(4.2).
 The total healthcare industry size is expected to touch
USD160 billion by 2017 & USD280 billion by 2020.
 Rising income level, greater health awareness, increased
precedence of lifestyle diseases and improved access to
insurance would be the key contributors to growth.
 There have been a number of govt initiatives to improve
research infrastructure and setup health and wellness
centres in India.
 Ayush FY 2017-18 budget allocation – $ 212.8 Mn
 National Health Mission FY 2017-18 allocation -
$4.21 Bn
 Demonetization effect: Short term effect on the
diagnostics sector and reagents business. However,
insurance and online ecommerce platforms had a major
benefit. The effect of demonetization also forced
prescription drugs rates to go down for a short while.
14.99
4.58
1.62
0 10 20
Drugs and Pharma
Hospital and Diagnostic
Centres
Medical and Surgical
Applicances
Cumulative FDI Inflows 2000 to 2017 ($ Bn)
Key Takeaway: Increased budget allocation for research, health and wellness centres and growing
public private partnerships will boost the LS market in India
Source: IBEF and Govt of India Websites

3. Indian Economy – Healthcare Sectoral Analysis
Analysis
Unmet Needs Game-changing Strategies
Universities have been playing a
very meagre role in research
development when compared to the
high-income countries
Increasing public private
partnerships, govt initiatives to
setup new medical colleges as well
as linking national labs to
universities will boost growth.
Although India is the 7th largest
patent filer. The patents per capita
is fewer when compared to the
USA, China, Japan, Germany and
Korea due to manpower shortages
and stricter patents
The government’s recent hiring of
over 450 additional patent
examiners and creation of an
expedited filing system for Indian
residents in 2017 may address the
issue.
Only 26 Indian companies in the top
2500 R&D companies forbes list.
Private investment lagging public
expenditure. 19 of these in only 3
sectors, pharma, automotive and
software. China has 301 companies
in all major R&D sectors.
Increase research funding from
private sectors as well as state
governments: Efforts like the 50:50
partnership with SERB for industry
relevant research under the
Ucchatar Avishkar Yojana (UAY) is
a good example of what could help
make such partnerships fruitful.
Source: Economic Survey 2018 and govt websites

4. Indian Economy – LS Sectoral Analysis
Analysis
Unmet Needs Game-changing Strategies
Complex approval process with
multiple regulatory bodies tough
guidelines to conduct clinical trials
are impacting the growth of LS
A unified ministry for pharma and
medical devices to streamline
regulatory approval processes was
proposed
High dependency on China for
sourcing many critical APIs has
created some vulnerabilities in the
health security of the nation.
The government needs to create a
robust framework — a cluster-
based approach to diminish the
dependency on China for the import
of crucial APIs
The higher rate of depreciation
(40%) is available on certain
medical equipment which is on
account of the obsolescence of the
equipment and not an incentive.
The depreciation rate should be
increased to 60 per cent for all
medical / surgical / pathological
equipment including life - saving
medical equipment
Source: Multiple sources and govt websites
The government’s move to
announce the sunset clause for
SEZs needs to be extended for few
more years; SEZs should also be
relieved from paying MAT
Slow infrastructure development in
the form of clusters and mega
API/pharma parks. Further, the
sector lacks R&D infrastructure,
such as incubation centres,
technology development centres
and data centres

5. Market Focus – Global Life Science Tools
Life Science
Industry: Pharma, Diagnostic and Hospital labsAcademic : CRO’s, Research Universities
CUSTOMER
Applications
Key Competitors
Indications
 Thermo Fisher Scientific (#1)
 Merck KGaA (#2)
 Agilent Technologies
 GE Healthcare
 Bio-Rad Laboratories
 Danaher Group
 Drug discovery and
development (60%)
 Molecular Diagnostics
(30%)
 Personalized medicine
(10%)
 Oncology
 Cardiovascular Diseases
 Neurological Disorders
 Autoimmune disorders
 Infectious Diseases
Source: Multiple Sources
48.2
58
0
20
40
60
80
2015 2020
Global LS Tools Market Size ($ Bn)
India LS Tools Market
Share
3%
Competitive Factors Price, quality of
products, efficiency,
post-sales service,
reliability and brand
recognition
Distribution Structure Direct sales, dealers
and distributors

6. Impact Mapping of Drivers and Restraints

7. Market Impact of Top key Growth Technology
Platforms
Projected
Impact on the
Life Science
Tools Market
High
Impact
Low
Impact
Certainty
Low High
Pathway-Based Analysis
High Throughput
Glycomics
PathBreath-Based Testing
(PoC) for
Cancer/Infectious Disease-
Based Analysis
Integrated Data Analysis Tools
Single Molecule Biosensors
Multimarker, Blood- Based
Tests for Neurodegenerative
Disorders
Cardiac Circulating
miRNA
Circulating
Microvesicle-Based
Cancer Testing
High Growth
Impact
Low
Growth
Impact
Medium
Growth
Impact
Source: Frost & Sullivan.
Genomics, Systems Biology—
Modeling and Simulation

8. Opportunity Analysis of key Growth Areas
Source: Frost & Sullivan
Key: The direction of the arrow denotes the progression of the technology.
The trends inside the dotted line (upper right) indicate those with high opportunities.

9. Srinivas Sashidhar’s Instinct
LS Tools in India – Grab the Opportunity
Government Initiatives Opportunity
• As per the Ministry of Health,
development of 50 technologies has
been targeted, for the treatment of
diseases like Cancer & TB.
• Huge market potential for companies to
focus on research and will boost the LS
reagents sector.
• Raising the limit of deduction for health
insurance premium and/ or medical
expenditure from `30,000/- to
`50,000/-, under section 80D. Boost for
senior citizens to claim benefit of
deduction up to `50,000/- per annum.
• Increases market inclusion for LS sector
in diagnostics and hospital labs. This
benefit will boost testing volumes
leading to market potential opportunity
of over 40% in addition to the existing
patient pool.
• Rs. 1200 crore allocated to setup 1.5
lakh health and wellness centres in FY
2018 budget. 24 new medical colleges
and hospitals to be setup.
• Increase in health and medical research
infrastructure will have a high impact in
the demand for LS instruments and
reagents.
Source: Analysis based on govt initiatives and trends

10. Srinivas Sashidhar’s Instinct : Target 2030
Goal Potential Game-changing Strategy
Need for a collaborative model which
will enable companies to self-finance
the demonstration of clinical utility
and bring the products on to the
market on time.
Integration model from research to commercialization:
The first type in this model is companies (eg. Genizon Biosciences) which are
involved in identifying new therapeutic targets. These companies receive
incentives for research and royalties ranging to 2 to 3% on marketed products.
The second type is a combination of technology licensing and demonstration of
economic benefits. Companies will focus on tests and the underlying techniques
for the identification and development of biomarkers. The commercialization is
completed by another company with adequate resources and well established
marketing capability. One example of such a model is Diagnocure which carries
out proof-of-concept work for licensed technology. The company develops the
appropriate cancer prototype. The final product completion and
commercialization is done in partnership with another company with proven
robust diagnostic platform. However, this company is developing itself into a
vertically integrated company.
The third type is a fully integrated standalone company such as Genomic Health
Inc. and Myriad Genetics which carries out all steps from research to
commercialization with its own sales force.
LS Tools Market in India: Game-changing Business Models

11. Srinivas Sashidhar’s Instinct : Target 2030
Goal Potential Game-changing Strategy
Diagnostic tests and research products
developed for diagnosis disease
management involves complex
multiple biomarker analysis.
The development of innovative
products will help companies to
market these test to health care
providers directly. This kind of
business model requires multi-
parametric predictive value.
The current reimbursement levels and business models find it challenging
to reduce expenses as complex multiple biomarkers based tests are
becoming costly for development and validation. To overcome this
challenge, many emerging business models can be worked out.
• Build new-age capabilities to sustain cost and speed-to-market:
Advantage even across tier-2 cities and emerging market segments
(e.g., using automation and new technology to lower costs; embedding
Quality by Design (QbD) to ensure “first time right” dossiers)
• Setup collaborative tie ups with Research Universities: With the
growing research institute initiatives by the government it is high time
to establish centers of research excellence for life sciences which will
enable constant demand for LS tools and reagents
LS tools market in India: Game-changing Business Models