Updated on 21 September 2012
How do you see the growth for Roche Diagnostics in India and other south Asian countries? What factors have been driving the market in these countries?
We expect our business to grow in the range of 20-to-24 percent over the next year, which is higher than the industry growth. Some of the predominant factors driving the market growth in these countries are increased health awareness and accessibility with expansion of existing labs. In addition, private entrepreneurship in setting up laboratories and hospitals is complimenting the initiatives of the government, leading to an increase in quality of diagnostics and treatment.
Traditionally Asian countries are very sensitive towards price. What are your thoughts regarding this? What strategies are you going to adopt to take the company on growth track?
We have to make sure that we remain competitive. Indian diagnostics is a price-sensitive environment. That's the way it is. We just have to manage the business appropriately. However, healthcare spending here is very interesting, as is seen in the latest government announcement on the next five years plan.
The government is increasing their healthcare spending, moving from 1.4 percent of GDP to 2.5 percent GDP. That will allow more people access to healthcare and given that 70 percent of clinical decisions are made in conjunction with diagnostic information, I see an increasing demand for high quality diagnostic testing.
How do you see the competition in the diagnostics market in the region?
We have competitors in India as we have globally. Everybody has their space within their various product portfolios and it's no different in India. But again the question is about maintaining the quality of products and systems to make sure we fit it right for the Indian environment. We are a significant player in many segments including centralized diagnostics, point-of-care, tissue diagnostics, molecular diagnostics, as well as life sciences. Our strength is our quality and our focus will be to partner with the laboratories in India by bringing high quality technology.
The government of India plans to increase expenditure on healthcare in its five year plan. What streamlines, if implemented by Roche, will help it to maintain a high growth rate?
All of our diagnostic businesses are performing well with Centralized Diagnostics and Near Patient Testing showing very strong growth. This is expected to continue as we move more into a partnership model with our customers and add value through long term relationships, and a drive for excellence in laboratory services.
Roche Diagnostics clocked $81.48 million revenues in 2011. What growth is Roche Diagnostics India looking at for 2012? What are your plans for India and for South Asian region?
Roche Diagnostic's intention is to maintain strong above market growth. Our plans for the region are to actively drive quality into the diagnostic environment and strengthen our internal processes to support high quality growth.
Diagnostics testing will not only increase as healthcare access increases, but new high quality tests and technologies will become available which will give clinicians more tools to treat patients. We will continue to focus on areas of unmet medical need and in particular there is a lot to do in blood screening and cervical cancer screening. We will work on sustainable relationships with our customers to ensure we provide high quality products, with good support systems to ensure quality diagnostics are delivered in India.