GE Healthcare, a unit of
General Electric Company
), recently formed a strategic partnership with Cancer Treatment
Services International (CTSI) to launch a chain of 25 cancer care
centres in India. Over a period of five years, the two companies
will jointly invest $120 million to set up these centres.
FED SIGNAL CP (FSS): Free Stock Analysis
GENL ELECTRIC (GE): Free Stock Analysis
NOBLE GROUP LTD (NOBGY): Get Free Report
SUMITOMO CORP (SSUMY): Get Free Report
To read this article on Zacks.com click here.
The centers will offer state-of-the-art technology for the
diagnosis and treatment of cancer at affordable prices,
replicating the standards of care found at the world's leading
The cancer care centers will come up across the state of Andhra
Pradesh and will progressively expand throughout the country. Per
the agreement, GE Healthcare will supply the equipment while CTSI
would be responsible for management of medical personnel,
treatment and other ancillary services.
Following a hub-and-spoke model, each center will be linked to a
hub through a sophisticated information technology network
supported by a transnational team of doctors and administrators.
The hub will provide diagnostic imaging and treatment
capabilities, while each center will deliver a range of
screening, staging and treatment alternatives.
CTSI offers comprehensive clinical and administrative solutions
for treatment of terminal diseases. It presently operates four
cancer hospitals in the U.S., making high-quality cancer care
accessible at affordable prices. Its healthcare delivery model
has proven to be successful in the U.S. and it plans to replicate
the success in countries like India, where cancer treatment is
still relatively inaccessible and costly.
Currently, India reportedly has at least three million cancer
patients, with an addition of 1.23 million new cases every year.
As per GE Healthcare estimates, three patients perish in every
two minutes due to this deadly disease. The high mortality rates
are primarily due to late detection, lack of access to advanced
healthcare facilities and high costs related to treatments.
With cancer cases increasing sharply, healthcare infrastructure
in India is often perceived to be insufficient and inaccessible
to most. The key objective of the CTSI-GE Healthcare initiative
is to detect cancer at an early stage in patients, thus making
treatment more viable by minimizing expensive later-stage
treatment costs. It also intends to provide medical access to
patients living in remote parts of the country.
GE Healthcare's Initiative
The partnership is a part of General Electric's $1 billion
commitment to Research and Development in order to diagnose
cancer. GE Healthcare is developing low-cost diagnostic
technologies in India for a range of other deadly diseases.
Recently, it also launched a low-cost version of PET-CT which is
widely used to find cancerous tumors.
General Electric currently holds a Zacks Rank #3 (Hold). Some
better-ranked stocks in the industry that look promising include
Federal Signal Corp.
Noble Group Limited
). All these stocks sport a Zacks Rank #1 (Strong Buy).