As industry stalwarts pen down exclusive columns for us and share their expert views on what we can expect over the next couple of years, we too look at what lies ahead for the industry.
The Indian MedTech industry, having built itself a reputation as a global center for frugal engineering, is poised to attract investment and generate revenues to the tune of Rs. 275,000 crore by the next decade. While this is impressive, the industry faces some major challenges and companies need to ensure that they address these to be a part of this success story.
Medical device companies can no longer concentrate just on manufacturing and R&D. They run serious risk of being stuck in the middle of the value chain, as mere commodity producers. As KPMG in its recent report recommends they will need to put together a Reinvent–Reposition–Reconfigure strategy. Services and data intelligence will need to be integrated with products to offer holistic solutions, requiring a power play across the value chain, strengthening existing B2B plays and creating new ones, while introducing B2C plays. These power plays will likely include a continuous slew of deal activities including M&As, strategic alliances, and partnerships. They will ultimately seek to play a larger role in the value chain and get closer to customers, patients, and consumers.
Hospitals at their end have their own woes. On the backdrop of increasing cost and complexity and price controls on drugs, consumables, and medical devices, their margins are being compromised. The shortage of medical professionals is adding to the need to build more financially sound operating models. The various online healthcare platforms that provide end-to-end services are also giving them a run for their money. Adoption of AI technology, IoT-based asset tracking, inventory management systems, and EHRs, and motivating usage of wearable devices will redesign patient’s experiences and that will be the key differentiator that the Indian market will offer.
All eyes are now on the amount of increase that will be allocated for public health spending in the Union Budget to be announced on February 1.