In an interaction with Shweta Papriwal, Editor, indiainfoline.com, Rajesh Sadhwani, Director, Generic Pharmasec Limited, "Indian Public Healthcare System is multi-layered with Public Health Centres (PHCs), Community Health Centres (CHCs) and Medical Colleges spread across different states in India".
What is your vision for the company in the coming 2-3 years?
Our vision is to be positioned as a leader in technology led innovator in healthcare space. We cater to three main segments including diagnostic solutions, medical devices and hospital pharmaceuticals. In the diagnostic solutions vertical we are targeting to acquire 10 million patients. With regards to medical devices, we aspire to create a strong niche in the infection control segment. Whereas our vision to be one of the top 20 hospital pharma supply in next five years. Overall, we have a set target of Rs 100 crores revenue by 2023.
Could you elaborate upon your business solutions?
First and foremost, we have the distribution rights for i-STAT, which is a patented diagnostic system for India. In addition, we offer Lab in the Bag - an innovative and technology solution for blood diagnostic testing, along with i-STAT (Abott's Point of Care solution).
Secondly, medical devices wherein the company's focus area is infection control in hospitals. We offer three key products here including Hand Wash - a fully automate, touch free systems that removes pathogens in just 12 seconds, Surface disinfectants, and Air Quality and Purifying devices.
Third segment is the hospital delivery sector. It forms the largest share (50%) of Indian healthcare sector. Hospital sector's size is about $22.5 billion and growing. There is a significant market that we intend to work with is the pharmaceutical supplies segment which will benefit from our technology driven solutions for drug procurement. We have various solutions to offer like package product implementation, cloud app development, enterprise mobility solutions, Business intelligence and analytics solutions, outsourced logistics services and more.
What are the challenges faced in India's healthcare system?
Indian Public Healthcare System is multi-layered with Public Health Centres (PHCs), Community Health Centres (CHCs) and Medical Colleges spread across different states in India.
Key challenges include overcrowded hospitals, shortfall of manpower including specialist doctors and paramedical staff, growing cases of chronic diseases such as diabetes and cardiovascular diseases. stagnant healthcare budgets, lack of infrastructure for diagnosis and delayed diagnosis and treatment.
To cite some numbers, 1:20,000 is the doctor to patient ratio in rural areas while 39% of PHCs are currently without a lab technician.
As compared to traditional blood analysis process, what are the unique features of i-STAT system?
This unique solution will help to reach out to rural India with ease and effectively, where healthcare providers are equipped with a device and an application, all in a single bag. This device provides and links i-STAT devices to Laboratory Information System (LIS), Hospital Information System (HIS) and Telemedicine. Above on a single platform it offer tests including Chemistries/Electrolytes, Haematology, Blood Gases, Coagulation, Cardiac Markers as well as Endocrinology.
In terms of workflow, it meets hospital requirements. There is a big advantage of reduced result Turn-around-time, centralised data management, no hidden costs, reduced risks and errors and less waste and variation in results.
What is the market potential of i-STAT solution?
With more than 15,000 private hospitals the addressable market is about $25 million. Considering the public sector, there are more than 30,000 healthcare delivery centres and government's push for "affordable health" is evident with schemes like Ayushman Bharat. This market is about $40 million. Furthermore, there are more than 10,000 standalone labs in the country and this segment is about $30 million. Also, there is a huge potential with the emergence of Test@home catching up in the country.
In first year itself we have seen base sales of Rs 10 crores, and is already part of a distribution deal. Second year we witnessed about Rs 20 crores.
Any developments in terms of products, new solutions?
Currently, we are in process of negotiating with three companies to acquire marketing rights for infection control devices, which is the biggest concern area for hospitals. Also, infection control segment is one of key focus areas for growth in the coming years.
Could you highlight your top line revenues numbers as well as expectations?
In FY2019, we witnessed about Rs 10 crore in top line revenue driven by diagnostics division while in 2020 the company crossed to Rs 25 core mark and top line revenue came from diagnostic as well devices division. We project and are working towards crossing the Rs 100 crore mark wherein diagnostics will contribute Rs 50 crore, devices will contribute Rs 30 crore and Rs 20 crore will be contributed by Pharmaceuticals division.