The recently published report on the Indian coronary stent
market by market research firm Ace Business and Market Research
Group (ABMRG) comes as a vital cue reminding medical device
mammoths of the lucrative potential residing in emerging
Research by ABMRG revealed that the Indian coronary stent market
has grown at a robust 22% during 2005-2012 to reach a worthwhile
$450 million. This growth came primarily on the back of
cardiovascular diseases (CVD) reflecting a rising trend, which in
turn, led to a surge in demand for PCIs (Percutaneous Coronary
Intervention). Further impetus came from improved healthcare
infrastructure and services, and growing disposable income. Added
to that, more than 90% penetration rate of drug-eluting stents
(DES) acted as a prime stimulus.
Moving on, mushrooming of a bunch of new private hospitals with
increasing number of interventional cardiologists; government
initiatives for the betterment of healthcare access; improving
healthcare insurance coverage and increasing use of high value
bioabsorbable stents are expected to pace up growth of the coronary
stent market in the country down the line.
While stents are still not covered under health insurance
translating into limitation in market demand, stalwarts should be
upbeat about the fact that large numbers of below-poverty-line
patients in this developing nation are sponsored either by state
government healthcare insurance or by insurance under public and
private partnerships. Researchers believe although a ceiling has
been imposed on stent pricing by some state governments within the
country, which may reduce profitability; in the long run, it will
definitely increase the penetration of stents in this untapped
In addition, ABMRG anticipates that an aging population,
improved life expectancy, and increasing lifestyle diseases
accompanied by complications like diabetes, hypertension and
obesity, should further fuel growth in the Indian market.
Boston Scientific Corporation
) and other players like Biotronik, Sahajanand Medical
Technologies, Meril Life Sciences and Translumina Therapeutics are
all vying to expand their presence in India through investments in
the coronary stent market. It is worth noting in this regard that
Johnson and Johnson
) Cordis stopped selling its stents in 2011, leaving the market to
be grabbed by the likes of Abbott, Medtronic and other players.
How the Behemoths are Faring in the Emerging
Abbott Laboratories continues to lead the investment trend in
emerging nations with about 50% of sales coming in from this
market. The company expects this contribution to climb to 60% by
2015. We believe that Abbott is extremely diversified with its
presence well established in the nutrition, medical devices,
diagnostics and branded generic pharmaceuticals markets. The
diversification should enable the company to penetrate into these
markets and capture incremental market share. Growth rates in the
emerging markets are expected to continue higher compared to the
Amid the backdrop of flattening or declining sales growth in
developed markets like the U.S. and Europe, Boston Scientific
Corporationis gradually strengthening its presence in the emerging
nations with Brazil, Russia, India and China (BRIC) recordinga
robust 22% growth rate in the last reported quarter.Boston
Scientific is currently targeting its emerging market revenue
contribution to increase from 8% of sales in 2013 to 15% in 2017.
According to the company, PCI volume in the U.S. market is likely
to be in the low single digits, and is likely to be offset by
robust growth in the international markets, especially in the
For Medtronic, the emerging market demonstrated a robust 14%
growth in the last reported quarter, representing more than 12% of
the company's total sales mix. The recent data shows that emerging
nations, on a whole for Medtronic, represent a $5 billion annual
opportunity in margins compared to developed markets. Management is
targeting 20% of its revenues from the emerging market eyeing
incremental revenues of $2.5 billion over the next 5 years.
Similarly, Johnson & Johnson has registered 13% growth in
the BRIC nations and is currently working to increase its presence
in these regions. The company has already set up manufacturing and
R&D centers in India, Brazil and China and expects to expand
further in China on the back of the Synthes acquisition.
Becton, Dickinson and Company
), with about 58% of its revenues from international markets,
witnessed double-digit sales growth in the emerging geographies
during the last reported quarter with China growing over 25% at
constant exchange rate (CER).
In the same vein,
Thermo Fisher Scientific, Inc.
) is also expanding its presence in the emerging nations. It
expects to garner 25% of total revenue from the high-growth
Asia-Pacific region and emerging markets by 2016, up from 19% in
2011. According to the company, particularly China, with its rapid
industrialization, increasing focus on healthcare, new BioPharma
R&D centers and government-sponsored research, holds robust
The Bottom Line
For the past few years, large-cap medical device makers have
been witnessing low-single-digit growth rate in the developed and
mature markets like the U.S., Europe and Japan. To reverse this
trend, they are now turning their focus to high-growth emerging
regions, specifically in economies like Brazil, Russia, India and
According to researchers, the lifestyles of Asian people are
undergoing a dynamic change due to a shift in preference toward the
West. As a result, Asians are now more prone to being affected by
heart-related diseases prevalent in the western countries.
We believe, India as the second most densely-populated country
in the world with favorable demography, infrastructure and
government initiatives, is an ideal investment package for the
medical device stalwarts.
Nonetheless, there exist hitches like the presence of numerous
local players and price competition from mid-sized European
companies which offer stents at almost half the price of popular
brands. To add to the woes, the recent reimbursement rates
reduction under the Central Government Health Scheme (CGHS) might
further force these companies to reduce their prices.
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