For those who are following Indian Healthcare Market with great interest – the recent McKinsey Report & Predictions on Indian Pharmaceutical Market would be of interest to you. I tried looking at this report at the McKinsey India web site but did not find it there. However, here is an alternate location from where you can download the PDF Version of the same report titled “India Pharma 2020 – Propelling Access and Acceptance, Realizing True Potential”. LiveMint also did a great job in summarizing this report in their daily edition (the graphics from LiveMint are here - PDF – 1, PDF – 2, and PDF – 3).
For me the following were the quick takeaways from this report -
- Over the last 5 years, the Indian Government spending on Healthcare has increased by a healthy 20% ($6.7 Billion to $11.7 Billion)
- Coronary Heart Diseases and Diabetics are the two prominent disease areas to see an increase of about 30-40% in the next decade.
- The data shows a steep rise in the number of people covered by healthcare insurance in the last 5 years (and is targeted to cover 45% of the population by 2020) – however important thing to note is that this steep rise is due to government-sponsored insurance coverage for below poverty-line population.
- Selling margins in India are lower compared with other emerging markets (~20-25%)
[Note - Send me an email if you have problems accessing the PDFs linked above. I have these PDFs locally stored with me.]