The only means to cut down costs of devices and disposables, which constitute a major component of healthcare costs, is by manufacturing them indigenously in India, avers to Dr Krishna Reddy, chairman of Relisys Medical Devices-Drugs.
According to Dr Reddy, 60 to 70 per cent costs of major procedures is contributed by the devices and disposables. The cost of the procedures can be brought down by bringing down the cost of devices. Currently, almost 90 per cent of devices and disposables are being imported at international prices.
Only few low end products are being manufactured indigenously such as fluid administration sets, blood bags and products such as condoms and copper-T. Majority of the low-end devices and disposables are manufactured in the un-organised sector. Recently, efforts have been made in the high-end products like heart valves, implantable pacemakers and coronary stents. Chitra Institute, a DST funded unit, has developed heart valve, he noted.
Emphasising the need for close synergy between the medical devices industry and the government, he commended that if a congenial environment is provided, the Indian medical devices and disposables industry can be of a formidable force in the domestic and international market. By 2007-08, an organized indigenous industry can take care of 50 per cent of the domestic market, which could be roughly to the tune of US $ 3,500 million and can achieve a modest export of around US $ 2,000 million.
The estimated world market size of medical disposable imports is around US $ 1200 million per annum. Health care industry is currently witnessing a growth of 20 per cent and is likely to reach 50 per cent growth rate level, soon. The value of imports within five years is likely to be around US $ 7,000 million per annum. During the period, the world market is expected to touch US 260 billion.
The world market for coronary stents has been witnessing a rapid growth during the last one decade, and is worth approximately US $ 2 billion. With the advent of drug-eluting stents, the stent market is likely to grow up to US $ 10 billion. Devices and disposables related to kidney, joints, cancer and other disorders have also gained significance, he added.