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India’s Med Tech Market Commercial & Regulatory Landscape Opportunities and Challenges MassMedic Richard Paddock Director, Med Tech Intl Trade Administration 9 March 2012

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Page 1: India’s Med Tech Market - s Med Tech Market Commercial & Regulatory Landscape Opportunities and Challenges MassMedic Richard Paddock Director, Med Tech Intl Trade Administration

India’s Med Tech Market Commercial & Regulatory Landscape

Opportunities and Challenges

MassMedic

Richard Paddock

Director, Med Tech

Intl Trade Administration

9 March 2012

Page 2: India’s Med Tech Market - s Med Tech Market Commercial & Regulatory Landscape Opportunities and Challenges MassMedic Richard Paddock Director, Med Tech Intl Trade Administration

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Contents

Applicable Background on India’s Economy

Medical Technology Products Market Regulatory Framework Evolving Policy and Regulatory Landscape Bilateral National Government Dialogues

Page 3: India’s Med Tech Market - s Med Tech Market Commercial & Regulatory Landscape Opportunities and Challenges MassMedic Richard Paddock Director, Med Tech Intl Trade Administration

International Trade Administration

Assist American firms facing foreign trade barriers

Monitor other countries’ compliance with trade agreements (WTO and FTAs)

Manufacturing and Services Division (MAS) engages with foreign governments to address industry-specific issues, conducts research and analysis.

ITA’s Office of Health and Consumer Goods

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Page 4: India’s Med Tech Market - s Med Tech Market Commercial & Regulatory Landscape Opportunities and Challenges MassMedic Richard Paddock Director, Med Tech Intl Trade Administration

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India - Commercial Environment

Economic/Political Landscape in Brief

Healthcare Products Market Profile

Healthcare expenditure at 4.8 % of the GDP Government spend is 0.9 % (2010)

0.9 beds per 1000 people (global average is 3.3) Shortfall of 1.4 million doctor; 2.8 million nurses

Governments and the private sector trying to address accessibility & affordability of healthcare

Healthcare – national and state issues

Page 5: India’s Med Tech Market - s Med Tech Market Commercial & Regulatory Landscape Opportunities and Challenges MassMedic Richard Paddock Director, Med Tech Intl Trade Administration

Market Size and Healthcare Expenditures

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Country Medical Device

Market Total ($M) 2009

Medical Device Imports

($000) 2009

Medical Device Import

Growth % 2009

Health Expenditures

($B) 2009

Health Exp Per Capital ($US) 2009

Health Exp as % GDP 2009 (World Av

10.4)

Japan 21,712.80 9,532,153 16.4 332.4 2,616 6.5

China 6,694.60 4,982,492 22.6 230.7 173 4.7

Australia 3,369.60 3,144,417 17.1 86.9 4,087 8.7

S Korea 3,034.90 2,126,345 2.3 55.7 1,128 6.8 India 1,986.20 1,545,296 19.1 56.3 48 4.4

Page 6: India’s Med Tech Market - s Med Tech Market Commercial & Regulatory Landscape Opportunities and Challenges MassMedic Richard Paddock Director, Med Tech Intl Trade Administration

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India’s Evolving Regulatory Landscape for Medical Technology Products

The Government of India is in the process of developing a regulatory regime for medical products

Background - Legislation Actions and Prospects for Central Authority

Current regulation of medical products –D&C Act of 1940 and D&C Rules of 1945.

In 2005, ten categories of products were notified for registration requirement and licensing - cardiac stents, drug eluting stents, catheters, intra ocular lenses, I. V. cannulae, bone cements, heart valves, scalp vein set, orthopedic implants, and internal prosthetic replacement

Import license

Page 7: India’s Med Tech Market - s Med Tech Market Commercial & Regulatory Landscape Opportunities and Challenges MassMedic Richard Paddock Director, Med Tech Intl Trade Administration

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Regulatory Framework Central and State Governments

Ministry of Health and Family Welfare

Provides technical advise on medical and public health

Implements various health schemes and services

Central Drugs Standard Control Organization

Registration and/or import of drugs, devices, vaccine diagnostic products, blood products and other products

Department of Biotechnology

Develops policy, also promotes and funds research activities

Engages in capacity building activities

Department of Pharmaceuticals

Pharmaceutical policy - including education and research

Manufacturing of drugs by government companies

Page 8: India’s Med Tech Market - s Med Tech Market Commercial & Regulatory Landscape Opportunities and Challenges MassMedic Richard Paddock Director, Med Tech Intl Trade Administration

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Regulatory Framework Central and State Governments

National Pharmaceutical Pricing Authority

Atomic Energy Regulatory Board

Other Ministries Finance, Commerce, and Environment

State Governments

• Manufacturing licensing for pharmaceuticals and devices

• Inspection of facilities and enforcement

• Promotion of biotech/medical parks and provides incentives

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Page 9: India’s Med Tech Market - s Med Tech Market Commercial & Regulatory Landscape Opportunities and Challenges MassMedic Richard Paddock Director, Med Tech Intl Trade Administration

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Responsibilities of Regulatory Bodies

Central Government Laying down standards of

drugs, cosmetics, diagnostics, and devices

Market authorization of new drugs. Regulation of clinical research

Grants import license Testing of drugs by Central

Drugs Labs Guidance on technical matters Monitoring adverse drug

reactions

State Government

Licensing and Enforcement Monitoring of

manufacturing and sales establishments Warehousing Wholesale Distribution Retail sale

Licensing of drug testing laboratories

Monitoring of quality of Drugs & Cosmetics, manufactured by respective state units and those marketed in the state

Page 10: India’s Med Tech Market - s Med Tech Market Commercial & Regulatory Landscape Opportunities and Challenges MassMedic Richard Paddock Director, Med Tech Intl Trade Administration

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Proposed Central Drug

Administration

CDA

Pharmacovigilance

Regulatory Affairs and Enforcement

New Drugs & Clinical Trials

Biological & Biotechnology Products

Medical Devices and Diagnostics

Imports

Organizational Services

Training and Empowerment

Quality Control Affairs

Legal and Consumers Affairs

Page 11: India’s Med Tech Market - s Med Tech Market Commercial & Regulatory Landscape Opportunities and Challenges MassMedic Richard Paddock Director, Med Tech Intl Trade Administration

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Challenges for Med Tech Companies in India’s Med Tech Market

Overview

Absence of single nondiscriminatory, comprehensive and efficient regulatory system.

Guidance documents still relate to drugs and not devices

Pricing policies - information requirements

Labeling and Barcoding

New requirements for clinical trials/evaluation

New adverse event reporting structure is as per drugs

Implementation of AERB guidelines for imaging equipment

Page 12: India’s Med Tech Market - s Med Tech Market Commercial & Regulatory Landscape Opportunities and Challenges MassMedic Richard Paddock Director, Med Tech Intl Trade Administration

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Bilateral Dialogues U.S.- India Health Initiative (HHS and MHFW)

The High Technology Cooperation Group’s - Life Sciences and Biotechnology Working Group

provides a framework for discussing issues of mutual concern

facilitate and promote high-technology trade

Commercial Dialogue Public-private - facilitate trade across a broad range of

economic sectors

Trade Forum Policy Led by USTR, with Commerce participation Promotes policies to increase market access and enhances

opportunities for trade and investments

Page 13: India’s Med Tech Market - s Med Tech Market Commercial & Regulatory Landscape Opportunities and Challenges MassMedic Richard Paddock Director, Med Tech Intl Trade Administration

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Thank you!

Contact Information

Richard Paddock

Director, Med Tech

International Trade Administration

(202) 482-3360

[email protected]

Ms. Ruma Chatterjee

Senior Commercial Specialist

Market Access and Compliance office

New Delhi

Phone: 91-11-2347-2226

[email protected]