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Innovations :Curing the Incurable

Disease Burden: Key disease conditions

Disease

Prevalence :2005

Prevalence (E): 2015

Cardiovascular

36 Million

62 Million

Diabetes

31 Million

46 Million

Blindness

12544000

12544000

Healthcare Challenge

The way ahead: Innovation

Why Innovation

Today, 21st century medical technology is often delivered with 19th century organization structures, management practices, and pricing models -Michael Porter

Process Innovation: Aravind Hospital

Aravind Hospital:

2,00,000+ people treated every year 60% of operations free of cost Average cost of surgery : 25US$ Average duration of surgery: 10 minutes Infection rate : 4/10,000 operations

Process Innovation: Aravind Eye Hospital

Process Innovation

Standardization

Reproducibility

Scale

Technology Innovation: Shantha Biotech

Shantha Biotech:

1st company to produce indigenous Hepatitis B Vaccine Resulting in a 30 times reduction in price of Hepatitis B Vaccine 1st company to launch a 4 in 1 vaccine A strong pipeline of biotech drugs Major supplier of Hepatitis-B vaccines to United States Got acquired by Merieux Alliance's subsidiary ShanH in 2006

Technology Innovation: Shantha Biotech

Technology Innovation

Collaborative Public Private R&D

Productive International Technology collaboration

State of the art Manufacturing facilities

Business Model Innovation: Mankind Pharma

Mankind Pharma:

A compound annual growth rate of 35% over last 4 years Ranked as 9th largest Pharma company in India Majority of sales coming from mature brands in slow growth segments Initial success came from rural areas and smaller towns Largest sales force :5000 Medical representatives Mankind presence in every village having 1000+ inhabitants

Business Model Innovation: Mankind Pharma

Business Model Innovation

Focus on rural areas & Tier 2 &3 towns

Low fixed cost, Aggressive pricing Right product mix

Strong sales force Huge distribution network Easy availability

Innovation : What will it lead to..

Technology Innovation

Ensure wider availability Business Model Innovation

New Products

Process Innovation

Lowering of Cost/ price

Thank You

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