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

IncreasingTreatment

costs

Lack of awareness

Increasing Disease Incidence

& prevalence

Poor affordability

Skewed HealthInfrastructure

Huge Population

Rising inequitiesIn healthcare

The way ahead: Innovation

Business Modelinnovation

Technologyinnovation

Processinnovation

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 PublicPrivate R&D

•Productive InternationalTechnology collaboration

•State of the artManufacturing 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………..

Ensure wider

availability

Lowering of Cost/ price

New Products

TechnologyInnovation

ProcessInnovation

BusinessModel

Innovation

Thank You