US-Based Everist Genomics Bucks the Outsourcing Trend
News May 22, 2012
Everist Genomics (EGI) announced that it has established a joint-venture company with the Manipal Group, one of the three largest healthcare sector companies in India. The joint venture will market EGI's portfolio of diagnostic, prognostic and therapeutic selection technologies in India. Over 350 cardiologists attended a medical conference organized by one of Inida's leading cardiac centers, Medanta Hospital in Delhi, at which EGI's two new mobile health (mHealth) diagnostic systems for cardiovascular disease, AngioDefender and CardioDefender were introduced to physicians attending the conference. Over 300 physicians registered on a waiting list to receive EGI's devices as they become available in India.
AngioDefender and CardioDefender integrate novel sensor technology with mobile digital services, smartphones and other mobile devices to provide flexible monitoring and diagnosis of cardiovascular conditions that traditionally have been limited to observation through legacy hospital diagnostic systems.
"The leading cause of death in India is cardiovascular disease, occurring 5 to 10 years earlier than in the west with incidence on the rise," said Dr. Ravi Kasliwal, Chairman of Clinical & Preventive Cardiology at Medanta Heart Institute, as part of his introduction of EGI at the medical conference--Dr. Kasliwal has participated in studies of AngioDefender and CardioDefender. "I believe by leveraging mobile service solutions these novel diagnostic systems have a strong potential to improve clinical management of CVD while creating efficiencies in cost and time spent in the healthcare setting."
The joint venture will enable key market access to EGI's product pipeline through Manipal's broad network of healthcare operations, which includes 15 hospitals, 9 primary care clinics and 55 community health centers. The partnership also leverages Manipal's strong background in medical products, commercially valuable infrastructure and capabilities within the India region.
The addressable market for AngioDefender and CardioDefender in India is bolstered by a number of social, economic and epidemiological conditions, including:
CVD is projected to account for 64 million cases in the year 2015; the country's prevalence of CVD risk factors, such as obesity and high blood pressure, has already surpassed the prevalence of such risk factors in the U.S.
The country's middle class is projected to grow to more than 40% by 2025, to become the world's fifth-largest consumer market.
The country is experiencing rapid adoption of new communications technology--the number of internet subscribers is projected to reach 450 million and the market for digital services is projected to reach $20 billion by 2015.
"India is at the forefront of the mHealth revolution. This transformation is largely being fueled by the country's significant investment in new communications infrastructure, such as broadband and wireless transmission equipment," said Alex Charlton, Executive Vice-Chairman of EGI. "The US has typically turned to the Indian market for cost savings and out-sourcing. However, we recognized the opportunity to accelerate growth in revenues and profitability by establishing a commercial presence in India, which is one of the world's fastest growing markets for healthcare products and services. We also recognized that success in India required a large, established commercial partner with access to the local market. The joint venture formed between EGI and the Manipal Group provides us with access to these valuable capabilities and market expertise," Charlton explained. "We expect our India JV company to generate over $100 million in additional revenues over the next 36 months. As a result EGI will grow faster, creating more high-tech jobs at EGI in the US, in areas including research, development, regulatory affairs and manufacturing"
In addition to EGI's cardiovascular franchise, the joint venture will also commercialize EGI's companion diagnostics and prognostics portfolio for cancer, a unique combination of four molecular assays designed to help physicians personalize treatment for cancer patients. The portfolio currently provides testing relevant to colorectal and uterine cancer and will be expanded to include other indications in the future.
EGI is planning to expand its footprint in a number of other international markets, such as China, Japan and Brazil, through similar partnerships. "Our partnership with Manipal provides a successful model to penetrate high-growth markets with disruptive technologies," Charlton said. "We are evaluating a number of other markets in which to introduce our product pipeline and are working to form similar joint venture partnerships with companies whose operational and commercialization strategy complement EGI's."
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