Industry Monitor Indian Healthcare Sector

Transcription

1 Industry Monitor Indian Healthcare Sector November 2014 Disclaimer: All information contained in this report has been obtained from sources believed to be accurate by Gyan Research and Analytics (Gyan). While reasonable care has been taken in its preparation, Gyan makes no representation or warranty, express or implied, as to the accuracy, timeliness or completeness of any such information. The information contained herein may be changed without notice. All information should be considered solely as statements of opinion and Gyan will not be liable for any loss incurred by users from any use of the publication or contents.

2 Table of Contents 1. In Focus Ebola Virus in India Industry Statistics Product Scan Private Hospitals Key Players Private Hospitals Company News Brief Healthcare and Pharmaceutical Sector Pharmaceutical Companies: Hospitals and Service Providers: Industry News Brief Mergers & Acquisitions Company Scan: Apollo Hospitals Enterprise Limited Upcoming Events P a g e

3 1. In Focus Ebola Virus in Ebola Virus Disease (EVD) is the latest epidemic ravaging mankind. Earlier known as Ebola haemorrhagic fever, it is a fatal illness with no vaccine and no detailed treatment. The virus is initially transmitted by wild animals, thereafter it spreads in the human population through human to human transmission. The recent Ebola outbreak in West Africa is the most major and complex outburst and has been responsible for more deaths than all other epidemics combined. Guinea, Sierra Leone and Liberia are the most severely affected countries. The World Health Organization has declared Ebola as public health emergency of international concern. Scientists have alerted that the virus could spread across the world from West Africa within three weeks. Prevalence and Death-Ebola 2014 Outbreak Country Prevalence Deaths Guinea Liberia Mali 1 1 Nigeria 20 8 Senegal 1 0 Sierra Leone Spain 1 0 United States 4 1 Source: World Health Organization Ebola virus has so far infected 20,000 people by October 2014 and 70 percent of the patients have died. Most of the infected are in the age group of 15 to 44. Care givers and health workers are also at high risk. More than 300 healthcare workers have been infected and 50 percent of them did not survive.though there has been no case of an Indian suffering from the disease so far, around 44,700 Indians live in Ebola affected countries. Indian airports need to be on high alert and screen passengers coming in from the affected regions. Further, there is an urgent need for diagnostic centers and testing facilities. Treatment centers and isolation wards must also be available in case someone tests positive. Ebola symptoms are easily noticeable in an infected person. Therefore, even though currently there is no known cure, the spread of the disease can be checked by efficient measures. The Ministry of 3 P a g e

4 Health has started conducting mock drill treatments for potentially infected patients. State authorities have designated hospitals, which will be checked by inspectors from central government. Nearly 50,000 kits containing personal protective equipment have been distributed to healthcare workers to protect them from getting and spreading the disease. Successfully containing the Ebola virus from spreading will depend largely on the region where it emerges. For instance, if it surfaces in Kerala, where the public health infrastructure is more advanced, suppression would be easier than in states like Bihar where medical facilities are poor. Only two public centers The National Institute of Virology in Pune and The National Center for Disease Control in Delhi - are currently equipped to diagnose the disease. The Health Ministry has confirmed that of the 96 blood samples tested for Ebola so far, none has been found positive. 4 P a g e

5 2. Industry Statistics Number of Food and Drug Administration (FDA) approvals from India ( ) Year Number of Approvals (till July) 32 Source: MedIndia, Asian Journal of Pharmaceutical and Clinical Research 5 P a g e

6 Indian Pharmaceutical Sector Market size (USD Billion) E Export Revenue (USD Million) Aug 2013 Apr Aug 2013 Aug 2014 Apr-Aug 2014 % Change Apr-Aug , , , , Import Revenue (USD Million) Aug 2013 Apr Aug 2013 Aug 2014 Apr-Aug 2014 % Change Apr-Aug , , FDI in Pharmaceutical Sector (USD Million) FY2011 FY2012 FY2013 FY2014 FY2015 (April-July) 209 3,232 1,123 1, Source: IBEF, Directorate General of Commercial Intelligence and Statistics, Department of Industrial Policy and Promotion 6 P a g e

7 USD Billion Industry Monitor - Indian Healthcare Sector November Product Scan Private Hospitals The private sector accounts for 80 percent of the India s healthcare delivery market. This is the highest share of private healthcare anywhere in the world. The segment is expected to grow at the Compounded Annual Growth Rate (CAGR) of 12 percent from 2013 to 2017, to reach USD 125 billion by 2017 from USD 78.6 billion in Private hospitals include nursing homes, midtier and top-tier private hospitals. Market Size of Private Hospitals in India F 2015F 2016F 2017F The growth of this segment has been primarily driven by increase in the number of Tier ΙΙ and Tier- ΙΙΙ cities. Rising income levels and exposure to international standards of quality have contributed to the rise in demand for quality private healthcare. The growing popularity of medical tourism has also boosted demand for private hospitals. Private hospitals are able to charge a premium of around 20 to 25 percent more for medical tourists, than what it does for local patients. Source: Business Standard, Gyan Research and Analytics Number of Beds in Top-five Private Hospitals in India Max Hospitals Care Hospitals Arvind Eye Hospitals Manipal Group of Hospitals Apollo hospitals Fortis Healthcare , ,000 10,000 15,000 Number of Beds Considerable private equity investments in private hospitals chains, not only in Source: Company Websites & Gyan Research and Analytics 7 P a g e

8 the urban areas but also in rural regions, are contributing appreciably to the growth of the private hospital sector. Large corporations have also begun venturing into this lucrative business. This trend is expected to continue into the foreseeable future as well Key Players Private Hospitals Fortis Healthcare Limited Fortis Healthcare Limited is a leading, Pan Asia-Pacific healthcare delivery provider with an asset base in five countries. The segments of the company include diagnostics, primary care, day care specialty and hospitals. Currently, Fortis operates its healthcare services in India, Singapore, Dubai, Mauritius and Sri Lanka through 65 healthcare facilities, over 10,000 beds and 240 diagnostics centers. In India, it has hospitals in Delhi, Amritsar, Kolkata, Navi Mumbai, Hyderabad, Jaipur, Bengaluru, Chennai and Noida. Fortis Healthcare specializes in nuclear medicine, oncology and general surgery and medicine. Apollo Hospitals Enterprise Limited - Apollo Hospitals Enterprise Limited is an Indian hospital chain founded in 1983 and based in Chennai. The company has hospitals in India, Sri Lanka, Bangladesh, Ghana, Nigeria, Mauritius, Qatar, Oman and Kuwait. Apollo was among India s first group of hospitals to be awarded International Healthcare Accreditation by the US-based Joint Commission International (JCI). The hospital chain specializes in robotic surgical systems, cosmetic surgery, bone marrow transplant, infertility cure and hand microsurgery. Apollo also runs the SAHI (Society to Aid the Hearing Impaired) and the CURE Foundation, which is focused on cancer screening and cure. Max Healthcare Institute Max Healthcare Institute is based in New Delhi. The institute is a wholly owned subsidiary company of Max India Limited. The hospital operates 11 centers in Delhi, NCR and the neighboring Punjab region. The company provides services such as nuclear medicine and cardiac imaging, labs, scans, cardiac pacing, electrophysiology, maternity services, general surgeries, urology and pulmonology. Sterling Hospitals Sterling Hospital is one of the largest hospital chains in Gujarat. It is owned and managed by Sterling AddLife India Limited. Sterling s multi specialty hospitals have a presence in six major cities of Gujarat Ahmedabad, Vadodara, Rajkot, Mundra, Bhavnagar and Gandhidham. It also has three satellite centers in Kalol, Mehsana and Himmatnagar. The areas in which Sterling 8 P a g e

9 provides medical care are, cardiology, neurology, hematology, oncology, reproductive medicine, critical and emergency treatment. Surgery treatments include CVTs, neuro and onco surgeries, nephrology and general surgeries. Vasan Healthcare Group The Vasan Healthcare Group is based in Trichy, Tamil Nadu. It has more than 170 eye care hospitals and 30 dental care hospitals across India, including two multi-specialty hospitals in Trichy. Vasan Eye care hospitals are day care centers for treating eye ailments. 9 P a g e

10 4. Company News Brief Healthcare and Pharmaceutical Sector 4.1. Pharmaceutical Companies: FDA bans Ranbaxy from copying AstraZeneca and Roche drugs The US Food and Drug Administration (FDA) has tentatively banned Ranbaxy Laboratories Limited from cheap copy of AstraZeneca Plc s heartburn drug Nexium. FDA has also revoked approval from Ranbaxy to copy Valcyte an AG antiviral of Rosche Holdings. Ranbaxy s quality control issues have led to this consequence. Dr. Reddy gets FDA approval to launch Valcyte FDA approves Dr. Reddy Laboratories to launch generic version of Valcyte in the US market. The approval will fetch Dr. Reddy a sale of USD 30 to 40 million. The drug is prescribed to patients with Acquired Immuno Deficiency Syndrome (AIDS). Cadila gets FDA warning Cadila Pharmaceuticals Limited got a word of warning from FDA for not following good manufacturing practices in its factory in Ankleshwar in Gujarat. The company violated quality standards and did not achieve overall observance with Current Good Manufacturing Practices (CGMP). Aurobindo Pharma becomes the fifth most valuable pharma firm Aurobindo Pharma s stocks surged 21 percent in October 2014, making it the fifth most valuable pharma company. Aurobindo surpassed companies like Ranbaxy Laboratories, Cadila Healthcare, Divi s Laboratories and Glaxo Smith Kline Pharmaceuticals in market capitalization ranking. FIPB rejects HBM s deal to buy stake in Amanta Healthcare Swiss investment firm HBM Healthcare investments Ltd. proposed to buy stakes in Amanta Healthcare, a Gujarat based healthcare company. The deal was rejected by the Foreign Investment Promotion Board (FIPB), the nodal government body monitoring foreign investment in India. For HBM Healthcare this could have been a debut deal in India. 10 P a g e

11 US s export ban on Wockhardt unlikely to be lifted until next year The US s ban on products from two of Wockhardt s plants are unlikely to be lifted until next year. Last year, the USFDA halted exports from the drug maker to the United States, over issues of quality control. The ban is largely responsible for the fall in the company s net profit Hospitals and Service Providers: CCI rejects complains against Apollo Hospitals The accusation of unjust business practices against Association of Healthcare Providers, Apollo Hospitals Enterprise and Yashodha Hospital by the competition commission of India (CCI). An individual has charged that the Association of Healthcare Providers has directed the private hospitals to withdraw the cashless medical facilities available to Central Government Health Scheme beneficiaries. Renovation Work starts at MY Hospital in Indore Renovation work on the largest government hospital of Central India, MY Hospital, in Indore, has started. The hospital authorities are refurbishing the hospital, beginning with civil construction to making it rodent free. This was revealed at a press conference held by the Divisional Commissioner. The new plan proposes to upgrade private wards and install music systems in the hospital. New scanners for military hospitals in Kolkata The Command Hospital, Eastern Command, acquired a new state-of -art GE Discovery 690 PET CT scanner, considered among best in the world. The process to procure and setup the equipment was started two years ago. This is an important development as the military hospital in Kolkata serves Army, Navy, Air Force as well as para-military personnel serving in the Eastern and North-Eastern part of the country. Sterling Hospital enters into a joint venture with IHHC Gujarat-based Sterling Group of Hospitals entered into a joint venture with Indian Home Healthcare (IHHC), to set up Asilia Home Healthcare. The latter will cater to the home healthcare service segment that provides nursing and medical services at home. The area of operation will include Gujarat, Madhya Pradesh and Rajasthan. Apollo Hospitals to add 2,175 beds over next three years Apollo Hospitals Enterprise targets opening 12 new hospitals with an investment of USD million. The company plans to add 11 P a g e

12 2,175 beds in the next three years. Most of the hospitals will be super-speciality facilities, while one of them will be multi-speciality and another a reach hospital. 12 P a g e

13 5. Industry News Brief India allocates USD 28 billion for Universal Health Plan India plans to spend around USD 28 billion on universal healthcare schemes, under which free drugs, diagnostic tests and insurance cover will be provided to all its citizens. The scheme under the National Health Assurance Mission is to be rolled out in a phased manner from April To start with, three to four districts in each state will be selected to roll out the scheme. Bombay High court approves Pfizer and Wyeth merger The Bombay High court approved the amalgamation of Wyeth Ltd. and the drug firm Pfizer. In November 2013, both Pfizer and Wyeth announced the merger of their India operations under a single brand to boost their business. The new entity will operate under the Pfizer brand. Three Indian states proactive in personal healthcare Maharashtra, Tamil Nadu and Karnataka have emerged as the top three states in collecting health insurance premium. According to the Associated Chamber of Commerce and Industry of India (ASSOCHAM), in FY2013, Maharashtra collected health insurance premium worth USD million, followed by Tamil Nadu and Karnataka. The three states together accounted for over half the gross health premium collected in India in FY2013. India Post to launch new stamps to highlight medical tourism India Posts will release stamps on liver transplant in recognition of India s achievement in global medical tourism. India is placed among the top-three medical tourism destinations in Asia. The stamp will acknowledge the progress and milestones achieved by the Indian medical fraternity. Fidelity invests USD 9.75 million in Cygnus Medicare Delhi-based Cygnus Medicare, which operates a chain of specialty hospitals, has raised USD 9.75 million funding from Fidelity Growth Partners, India, and Somerset Indus Capital Fund. Fidelity owns 28 percent stake in Cygnus. The company plans to use the fund to expand into small towns. It aims to provide super specialty healthcare to Tier-ΙΙ and Tier-ΙΙΙ cities in North India. 13 P a g e

14 RSBY to be transferred to NHAM The Labour Ministry s Rashtriya Swasthya Bima Yojna (RSBY) is set to be transferred to the Health Ministry as part of the National Health Assurance Mission (NHAM). The NHAM plans cover all aspects of healthcare including primary, secondary and tertiary healthcare. RSBY will be responsible for providing secondary healthcare benefits. 14 P a g e

15 6. Mergers & Acquisitions Company Investment Cipla buys 60 percent stake in Sri Lankan firm USD 14 million Sun Pharmaceutical Industries acquires stake in Ranbaxy Laboratories USD 3.2 billion Apollo Hospitals to acquire Hetero Med pharmacy stores USD 2.3 million Source: Business Standard, Economic Times 15 P a g e

16 7. Company Scan: Apollo Hospitals Enterprise Limited Company Details and Overview Sector Turnover Chairman/MD/CEO/President Hospitals and Medical Services INR million Dr. Pratap C. Reddy No. of Employees 35,883 Company Overview Contact Details Apollo Hospitals Enterprise Limited is an Indian Hospital chain based in Chennai. It was founded by Dr. Pratap C. Reddy in The company has hospitals in India, Sri Lanka, Bangladesh, Ghana, Nigeria, Mauritius, Qatar, Oman and Kuwait. Apollo was among India s first group of hospitals to be awarded International Healthcare Accreditation by the US-based Joint Commission International (JCI). The hospital chain specializes in robotic surgical systems, cosmetic surgery, bone marrow transplant, infertility cure and hand microsurgery. Apollo also runs the SAHI (Society to Aid the Hearing Impaired) and the CURE Foundation, which is focused on cancer screening and cure. 19, Bishop Gardens, Raja Annamalaipuram Chennai ( Madras) Tamil Nadu, India Phone , Fax [email protected] 16 P a g e

17 Business Areas Group Companies Apollo Munich Health Insurance - joint venture with Munich Health Apollo Health Street Limited - BPO and IT Services Company Apollo Pharmacy - largest retail pharmacy chain in India Apollo Health and Lifestyle Limited - lifestyle clinic service Apollo Telemedicines Enterprises Limited - telemedicine service provider Equipment World - medicine equipment advisory Family Health Plan Limited - health insurance and third party administrator Keimed - pharmaceutical procurement and supply chain management company MedVarsity Online Limited - develops online medical content along with NIIT Growth Strategy and Business Model The Apollo Hospitals has undertaken major reorganization of its top leadership, with the objective of accelerating its growth and furthering its strategic goals. The strategic re-alignment will enable the company to focus on growth opportunities in hospitals, pharmacies and clinics. The company aims to deepen the focus in each of these verticals as well as drive synergies between them using technology to foster wellness, innovation and productivity. In future, Apollo aims to focus on highend specialties and procedures. 17 P a g e

18 Financial Standing Standalone Financials of Apollo Hospitals Enterprise Limited (in INR million, except Ratios) FY2010 FY2011 FY2012 FY2013 FY2014 Sales 18, , , , , Operating Profit Net Profit Net Worth Debt Equity Ratio Return on Net Worth (RONW) (%) Net Profit Margin (%) Return on Capital Employed (%) Interest Coverage Ratio EPS (in INR) Source: Annual Report of the Company, year ending March P a g e

19 8. Upcoming Events Event Organiser Date Venue Highlights Contact Details BioPharma India Convention, 2014 Terrapinn Holdings Ltd Nov 18 - Nov 19, 2014 Hyatt Regency Hotel, Mumbai, India The 12th Annual BioPharma India Convention will focus on the development of biosimilars and vaccines, innovations in biologics manufacturing, regulatory compliance and growing pharma issues in India today. rachel.james@terrapinn. com m/conference/biopharm a-india/ P-MEC 2014 UBM Asia Dec 2 - Dec 4, 2014 Bombay Convention and Exhibition Centre, Mumbai, India Latest trends and innovations the pharmaceutical market has to offer [email protected] dia/home 3 rd India Med Expo, 2014 G India Technologi es Dec 12 Dec 14, 2014 Hyderabad Trade Exposition Center, Shilpa Park Rd., Madhapur, Andhra Pradesh Conferences, seminars, product launches and networking opportunities will be some of the highlights of this event. [email protected] sales.indiamedexpo@g mail.com CPhi, India, 2014 Chematek Dec2 Dec 4, 2014 Bombay Convention and Exhibition Center, Mumbai, India This event will facilitate companies to pick up high quality, low cost pharma solutions. ivanpapandrea@chem atek.com [email protected] 19 P a g e

20 GYAN RESEARCH AND ANALYTICS PVT. LTD. Corporate Office: LG 37-38, Ansal Fortune Arcade, Sector-18, Noida Delhi NCR, INDIA Phone: Regd. Office: 298-A, Pocket 2 Mayur Vihar Phase -1 Delhi , INDIA Central Delivery Centre: BD-9, Sector-1, Salt Lake City Kolkata , INDIA Phone: [email protected] Website: 20 P a g e