INDUSTRY TRENDSEFFECTS OF COVID-19
Last year was the first time that we saw in vitro Diagnostics (IVD) flash as ‘breaking news' across our television screens, week after week. On one hand, Covid-19 presented a mammoth challenge in front of us in the form of mortality and morbidity, while, on the other, it made three longstanding desirables of the Indian diagnostics ecosystem come true in a single stroke- starting with effective collaboration between the Industry and academia, fast-paced development and commercialization of innovative IVD products, to an unparalleled support from the regulatory machinery of the country.
During the past one year, several new indigenous IVD tests for COVID-19 detection were launched successfully. They ranged from those based on RT PCR, Immunochromatography, ELISA and CRISPR technologies to high quality Viral Transport Media. This period, therefore has undoubtedly been the most prolific with respect to the development and commercialization of new IVD products.
The Indian IVD market is estimated to have recorded a year-on-year growth of more than 30% during the calendar year 2020, which is close to double the rate at which the industry had grown in the past decade. In 2019, the Indian IVD market size was pegged at USD 1Bn or Rs. 7500 Cr. The market was expected to grow at a CAGR of 15% before the Covid-19 crisis. During the year 2020, however, the demand for regular, non-Covid IVD tests witnessed a sharp decline which resulted in a de-growth of about 50% compared to the previous year. An overwhelming surge in the demand for Covid-19 related tests, however, more than made up for this degrowth. During the first half of 2020, Covid-19 related products added close to Rs.3,400 Cr to the market. During the second half of 2020, the number of tests being performed increased rapidly to reach 10 to 11 lac per day. As a consequence, the second half of the year is estimated to have added nearly Rs. 3,900 Cr to the market taking the size of Covid related products to a total of ~ Rs. 7,300 Cr. The total market size therefore reached a value of over Rs. 10,000 Cr, in the year 2020.
Vanguard Diagnostics’ contribution to the industry - Indigenization & Import Substitution
Vanguard Diagnostics (P) Limited, is a development and manufacturing company in the in-vitro Diagnostics space, founded in February, 2015 by a motivated team of professionals with a cumulative experience of over 100 years in the field of diagnostics. We position ourselves as being the first choice partner, for all non-manufacturing companies based in India and the sub-continent. Our model aims at reducing the need for import and giving an impetus to the ‘Make in India' initiative.
Our Manufacturing facility is located at Okhla Industrial Area, New Delhi with a capacity to manufacture 1.5 million liters of diagnostics reagents annually while working in a single shift. We have automated majority of our operations which has helped us keep our prices competitive and affordable.
We offer an unmatched lead time of only 4 weeks to develop a customized product for our customers based on our indepth knowledge of R&D, manufacturing and quality systems. We have developed customized, domestic reagents for over 20 imported threepart hematology analyzers so far. We were amongst a few companies to manufacture indigenous reagents for 5-part hematology analyzers in the country.
In 2016, Vanguard Diagnostics tied up with a reputed company Diagon-Hungary, well known for hematology controls and emerged as a niche supplier of hematology controls. Our hematology controls offer the longest shelf life and smallest pack sizes, making it possible for even mid-size laboratories to adopt quality control protocols. In fact, this product line is an enabler for all kinds of pathology laboratories to produce reliable results in line with international standards. We also provide dedicated quality control value sheets for analyzers within ten days. Our objective is to build an Indian brand that stands for quality and reliability across diagnostics markets and to reduce the need for imports and forex outflow.