Global non-invasive technology major Masimo is expecting future revenues from India and has initiated talks with state governments to invest in its range of products like the pulse oximetry equipment that detects life-threatening conditions from blood disorders to heart problems. The company plans to adopt the deferred agreement business model with its clients who will include government and private hospitals. Under the model, the company installs the equipment and the loan arrangement enables the healthcare provider to start making payments at some specified time. This is a well-established practice for sale and revenue generation from medical devices in the US.

“We are going out of the way to make our non-invasive technology acceptable and available across India’s government and private hospitals. A standard practice for medical device sale is outright purchase by a healthcare provider. Now we offer deferred agreements, because capital purchase is a burden. Hospitals are forced to postpone equipment since capital funding cycle is closed and need to wait for the next year’s budget. This is where we engage with healthcare providers on a 4-5 year payment commitment period to avoid the one-time capital burden at no additional cost,” Jon Coleman, president, Worldwide Sales, Masimo Corporation told Pharmabiz.

India holds a tremendous opportunity because healthcare is a challenge with a gross mismatch between hospital beds and patients. This opens opportunities for home healthcare players to maximise bed-side diagnosis and treatment without hospital admissions. The trend is catching up and Masimo’s non-invasive devices monitor not just blood pressure but even rare blood related disorders besides critical congenital heart disease (CCHD), noted Coleman.

Currently, US constitutes 65 per cent of Masimo’s chunk of business. The remaining 35 per cent revenues come in from other global markets. “The Asian region, particularly India, is important for our international growth strategy and we have targeted 40 per cent revenues from here. There are discussions with all state governments and corporate hospitals. The latter have comprehended the criticality of non-invasive diagnostic technology to save lives and have installed our pulse oximetry equipment,” he added.

Coleman was in India to ensure CCHD fatalities among new born infants could be stopped. The company is working with the Tamil Nadu-based Institute of Child Health, Egmore for study on 5,000 babies. This study will help validate the advantages of pulse oximetry, said Coleman. He added that CCHD is a strategic initiative for Masimo and pulse oximetry, which is an inexpensive tool, enables its early diagnosis.

He said Masimo can play a vital role in Indian Newborn Action Plan, under which the ministry of health and family welfare is accelerating infant survival. In this regards, the company is in talks with state governments.