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HbA1c Testing Market – India September 2014
Executive Summary Market
India is facing a persistent rise in its diabetic patient population and the number is estimated to grow from ‘u’ mn in 2013 to ‘v’ mn in 2018 HbA1c testing market in India is expected to reach INR ‘h1’ bn in 2018, growing at a CAGR of ‘x1’% from INR ‘a1’ bn in 2012
Drivers
Drivers & Challenges
Technology Trends
Competitive Landscape
Challenges
Increase in the number of diabetics Growing need for diabetes diagnosis Increasing ageing population Comprehensive health insurance policies covering diabetics
Test results can be influenced High price of tests Racial and ethnic variations in HbA1c results
Latex Enhanced Immunoassay Method Enzymatic HbA1c Assay Method High-Performance Liquid Chromatography Method
Major Diagnostic Service Providers
Company 1
Company 2
Company 3
Major HbA1c Analyzer and Reagent Manufacturers
Company 4
Company 5
Company 6
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• Macroeconomic Indicators • Introduction • Market Overview Testing HbA1c • Drivers & Challenges • Diabetes Disease Trends • Technology Trends • Competitive Landscape • Strategic Recommendations • Appendix HbA1c TESTING MARKET IN INDIA 2014.PPT
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Macroeconomic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn 15 14 d1 c1 13 b1 12 a1
c4 b4 a4
c3 b3
d2 c2 b2 a2
a3
11
Q1
Q2 2010-11
2011-12
Q3 2013-14
2012-13
Q4
Inflation Rate: Monthly % 2 1
p
r
s
q
0 -1
-t
-2
Jul 2013 - Aug 2013
Aug 2013 - Sep 2013
Sep 2013 - Oct 2013
Oct 2013 - Nov 2013
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Nov 2013 - Dec 2013 4
Healthcare system in India requires a large public outlay due to the huge population base Healthcare Industry Overview
Healthcare Market Size & Growth
• Healthcare expenditure comprises ~y% of India’s GDP • Favorable demographics, increase in awareness levels and better medical care are some factors that are driving the healthcare sector in India • Hospitals form the largest segment of overall healthcare market, followed by pharmaceuticals, medical devices, health insurance and diagnostics • Gradual penetration of health insurance is stepping up affordability of health services through increased demand for preventive and curative healthcare services • Superior quality healthcare, coupled with low treatment costs in comparison to other countries, is benefitting Indian medical tourism, thereby driving the Indian healthcare market • Treatment for major surgeries in India costs approximately 20% of that in developed countries
INR tn 15 +16.6%
10 5
a
b
c
2012
2013e
2014e
d
2015e
g
f
h
0 2016e
2017e
2018
Healthcare Market – Segmentation (2012)
Segment 1
u% s% t% r%
Segment 2 Segment 3 p%
q%
Segment 4 Segment 5 Others
N.B.: Diagnostics include both Pathology and Radiology HbA1c TESTING MARKET IN INDIA 2014.PPT
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Diabetes is a major 21st century disease that would affect nearly one-tenth of the world population by 2030 Diabetes – Global Overview • Diabetes is one of the major health and development challenges that the world is facing today with an estimated ‘w’ mn deaths due to diabetes in 2013 • In addition, about ‘v’ mn people do not have access to the necessary medicines and technologies required to maintain their health and prevent complications arising out of diabetes • It is estimated that by 2035, there will be around ‘y’ mn people living with diabetes • China and India together constitute ~p% of global diabetes prevalence
Global Prevalence of Diabetes mn
+2.13%
500 400
a
b
c
2011
2012
2013
d
f
g
h
i
j
k
2014e
2015e
2016e
2017e
2018e
2019e
2020e
300 200 100 0
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Rising diabetic population of India will ensure steady growth of HbA1c testing HbA1c – Market Overview • HbA1c market in India is expected to reach INR ‘h1’ bn in 2018, growing at a CAGR of ‘x1’% from INR ‘a1’ bn in 2012 • HbA1c tests can be offered exclusively or in packages with other tests by diagnostic service providers • High-Performance Liquid Chromatography (HPLC) method is currently the most common method adopted for conducting HbA1c tests in India • PoCT for HbA1c testing at the household level is not available in the domestic market and hence, the laboratories and hospitals offering HbA1c tests hold 100% market share • There is a growing level of awareness among the diabetic patient population of India about HbA1c testing which is leading them to take the test independently, which in turn, will suitably drive the HbA1c testing market in India Approximately 3%-5% of the HbA1c test takers come without doctor’s recommendation
HbA1c Market Size & Growth
HbA1c Tests Conducted Annually
INR bn
mn
8
+x1%
6
d1
4
a1
b1
c1
f1
g1
h1
+x2%
15 10
a2
b2
c2
d2
f2
g2
h2
5
2
0
0
2012
2013
2014e
2015e
2016e
2017e
2018e
2012
HbA1c TESTING MARKET IN INDIA 2014.PPT
2013
2014e
2015e
2016e
2017e
2018e
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Drivers & Challenges – Summary
Challenges Drivers
Test results can be influenced
Increase in the number of diabetics
High price of tests
Growing need for diabetes diagnosis
Racial and ethnic variations in HbA1c test results
Increasing ageing population
Comprehensive health insurance policies covering diabetics
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Diabetes Disease Trends– Summary Diabetic Retinopathy
Glaucoma
Cataract
Diabetes Disease` Trends
Diabetic Neuropathy
Cardiovascular Disease
Chronic Kidney Diseases
Foot Ulcers
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Market Competition – Porter’s Five Forces Analysis Impact XX Threat of New Entrants
Impact XX
Bargaining Power of Suppliers
Impact XX
Competitive Rivalry
Impact XX
Bargaining Power of Buyers
Impact XX Threat of Substitutes
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Competitive Benchmarking – Diagnostic Service Providers (1/4) Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3) Operating Margin
Net Margin
%
60
a1
40
a2
20
b2
a3 b3
0 -20
-b1 Apollo Health and Lifestyle Ltd.
Dr. Lal Pathlabs Pvt. Ltd.
SRL Diagnostics Pvt. Ltd.
• Company 1 recorded operating margin of a1%, higher than that of Company 2 and Company 3 which recorded operating margin of a2% and a3% respectively • Net margin was highest for Company 2 which recorded a net margin of b2%, followed by Company 3 and Company 1. which recorded net margin of b3% and –b1% respectively
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Private: Domestic Company – Company 1 (1/5) Company Information
Offices and Centres – India
Corporate Address
Tel No. Fax No. Website Year of Incorporation Head Office
Products and Services Category Consultations
Products/Services
Key People Name
Designation
Person 1
Whole-Time Director
Person 2
Director
Heath Check
Person 3
Director
Others
Person 4
Director
Diagnostics
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Private: Domestic Company – Company 1 (2/5) Shareholders of the Company Name
Ownership Structure No. of Shares held
Category 1
Shareholder 1 Shareholder 2 Shareholder 3 Shareholder 4
100%
Shareholder 5 Shareholder 6 Shareholder 7 Shareholder 8 Total
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Private: Domestic Company – Company 1 (3/5) Financial Snapshot Total Income
Key Ratios Net Profit/Loss
INR mn 800
INR mn -q4 q1
q2
600
-q3
400
p1
p2
2010
2011
50 0
p4
200 0
Particulars
-50 -100
p3
-150 2012
2013
y-o-y change (2013-12)
2013
2012
2011
Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
Cost Ratios Operating costs (% of Sales) Administration costs (% of Sales)
Financial Summary
Interest costs (% of Sales)
• Company incurred a net loss of INR XX mn in FY 20XX, as compared to net profit of INR Y mn in FY 20YY
Liquidity Ratios
• It reported total Income of INR XX mn in FY 20XX, registering an increase of X per cent over FY 20YY
Leverage Ratios
• It earned an operating margin of X.X per cent in FY 20XX an increase of X.X percentage points over FY 20YY • The company reported debt to equity ratio of X.XX in FY 20XX, an increase of X.X per cent over FY 20YY
Current Ratio Cash Ratio Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
HbA1c TESTING MARKET IN INDIA 2014.PPT
Decline
14
Private: Domestic Company – Company 1 (4/5) Business Highlights Description
News
Overview
• XX
Diagnostics
• XX
HbA1c
• XX
Future Plans
• XX
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Private: Domestic Company – Company 1 – SWOT Analysis (5/5)
S
W
O
T
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Public: Foreign Company – Company 2 (1/4) Company Information
Head Office – India
Corporate Address
Tel No. Fax No. Website
Year of Incorporation Ticker Symbol Stock Exchange
Head Office
Products and Services Category Pharmaceutical & Nutritional
Medical Products and Diagnostic Tests
Products/Services
Key People Name
Designation
Person 1
Chairman
Person 2
Managing Director
Person 3
Independent Director
Person 4
Independent Director
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Public: Foreign Company – Company 2 (2/4) Financial Snapshot INR mn
Total Income
20,000
b2
15,000 10,000
b1
5,000
a1
a2
Key Ratios INR mn
Net Profit / Loss b3
b4
2,000 1,500
a3
a4
1,000 500
0
0
2010
2011
2012
2013
Financial Summary • It reported total Income of INR XX mn in FY 20XX, registering an increase of X per cent over FY 20YY • It earned an operating margin of X.X per cent in FY 20XX an increase of X.X percentage points over FY 20YY • The company reported debt to equity ratio of X.XX in FY 20XX, an increase of X.X per cent over FY 20YY
2013
2012
2011
2010
Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
Liquidity Ratios Current Ratio Cash Ratio
Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Financial Summary Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Absolute)
y-o-y change (2013-12)
Cost Ratios
• Company incurred a net loss of INR XX mn in FY 20XX, as compared to net profit of INR Y mn in FY 20YY
Indicators
Particulars
Value (dd/mm/yyyy)
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
HbA1c TESTING MARKET IN INDIA 2014.PPT
Decline
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Public: Foreign Company – Company 2 (3/4) Key Business Segments
Key Geographic Segments
Segment 1
Region 1
100% 50%
100% 100%
The company operates only in the Segment 1
0%
50%
100%
Region 1 is the only geographic segment in which the company operates
0% 2013
2013
Business Highlights Description
News
Overview
• XX
HbA1c Testing
• XX
Future Plans
• TXX
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Public: Foreign Company – Company 2 – SWOT Analysis (4/4)
S
W
O
T
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