Telemedicine, healthcare education and training, clinical trials, health insurance, contract research and manufacturing are some of the key areas in the healthcare sector that would attract private equity (PE) investment in the future, says a CII report.
As per emerging markets, private-equity investment in India’s healthcare sector tripled from $126 million in the first half of 2007 to $459 million between January and June 2008. The other lucrative areas that the report identifies include emergency health services, participation in national immunisation programme, drug and pharma development and joint health initiatives between the government and private players.
?Health education and training have the potential to contribute an additional 2%-3% to the GDP growth,? said the report. A CII study envisages that by 2012, the opportunity landscape in healthcare industry would offer 4 to 4.5 million new (incremental) jobs, considering the likely improvements in economic output and labour productivity. To support this, the country would need 4 to 4.5 million skilled human resources under various levels. Of the total jobs generated, around 34% would be accounted for by support staff, ward boys, catering and housekeeping; 40% by nurses and technicians, and 10% by doctors.
While pointing out that awareness, coverage and penetration of health insurance is low, the report points out that there is potential to convert the ?out-of-pocket? spending (75% of total healthcare expenditure) into a formal risk-pooling mechanism.
As per the clinical trials market, Mckinsey estimated that clinical research in the country would touch the $1-billion mark by 2010, whereas Ernst & Young projects the markets to reach $1.5 to 2 billion by 2010. The Planning Commission in March 2008 estimated the market value for the clinical trial outsource to India to be around $300 million, an increase by 65% in 2006, and said it is expected to touch $1.5 to 2 billion by 2010. By 2010, the industry is expected to spend over $300 million on clinical trials in India.
?With world-class manufacturing facilities and competent scientists and technologists manning contract manufacturing in the country, international companies are eying Indian facilities for manufacture of essential APIs and formulations,? the report said.
India already holds over 80 US FDA-accredited manufacturing API and formulation units, the second-largest in the world after the US. ?Several multinational companies now see India as a key market for their vaccine business, which is touching $700 million,? the report adds.