), a global leader in medical technology, announced its foray
into the kidney dialysis business in collaboration with India's
Apollo Hospitals Enterprise Ltd., one of the leading names in
healthcare in Asia.
The joint venture will enable MDT to commercialize an innovative,
affordable and portable hemodialysis system in India. The
portable system is expected to enhance patient access to Renal
Replacement Therapy (RRT), particularly in the cases of End Stage
Renal Disease (ESRD) patients.
Hemodialysis is the most widely accepted dialysis treatment, both
globally and in India. More than 90% of patients in India
undertake hemodialysis, as part of the standard dialysis
treatment for chronic kidney diseases.
When a patient reaches the ESRD level, survival chances become
low, with RRT being the only possible treatment option. The best
treatment option for ESRD patients is however, renal
transplant. Yet studies show that only 5% of ESRD patients
receive the much-needed transplant, due to a shortage of kidney
As a result, an increasing number of patients enter ESRD, for
whom the next best treatment alternative to transplant is
dialysis. It is a mechanism through which excess metabolic waste,
toxins, and water are removed from the blood.
Medtronic's portable and cost-efficient hemodialysis service is
designed to use much less water compared with existing dialysis
systems. Less critical features will in turn, help physicians and
patients to respectively render and receive the otherwise
difficult therapy. These special aspects were considered keeping
in mind the various shortcomings previously faced with regard to
dialysis treatment in India.
The collaboration will help MDT to focus on the emerging Indian
market. Medtronic envisages high-teen growth in the near term and
long-term growth of 20%. Emerging markets are expected to serve
as positive catalysts for the company and provide a consistent
source of revenue over time. Medtronic recently garnered growth
of 15% from such markets.
On the other hand, the partnership with Medtronic marks an
important step for Apollo Hospitals in the field of
research-driven healthcare. Apollo Hospitals expects to
accomplish its mission of delivering enhanced clinical outcomes
through bench-to-bedside innovation.
Medtronic plans to develop and manufacture key components of the
system in India, with an investment of more than 150 crore rupees
(US$25 million). It is also establishing an India R&D
team that will specifically focus on design, development and
manufacturing of key components of the system in India.
The commercial launch of the product is expected in 2016.
Hence, neither MDT nor Apollo Hospitals expect the collaboration
to materially impact their earnings in their respective fiscal
Both companies foresee immense opportunities in the Indian
dialysis market, as statistics show that nearly 10% of adults
(nearly 7.5 crores or 75 million people) suffer from chronic
kidney diseases, while another 200,000 ESRD patients require
dialysis or kidney transplant annually.
The new portable hemodialysis system promises to change the
entire dialysis experience, enabling patients to receive the
treatment at home, rather than having to go to a hospital or a
stand-alone dialysis centre, at lower costs than traditional
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Medtronic currently carries a Zacks Rank #3 (Hold). Other
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), carrying a Zacks Rank #1 (Strong Buy), and
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), each carrying a Zacks Rank #2 (Buy).