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La-med Healthcare to offer quality medical devices in untapped regulated markets by 2021

The Faridabad based La-med Healthcare Private Limited will offer premium quality medical devices such as needle-free connectors, ventilator circuits with combo kits, PTCA kits and anti-UV extension lines in the so far untapped regulated markets like South America, Australia, New Zealand, Peru, Chile, Panama and Mexico by 2021.

For this purpose, the company is scaling up its manufacturing potential with construction of another plant parallel to the existing facility in Faridabad. La-Med today exports around 150 million devices to over 55 countries across the globe.

“Current COVID-19 outbreak in the country has put a lot of pressure on the medical and healthcare infrastructure. As a result of this pandemic, we see a surge in the demand for various medical devices which are essential components of respiratory equipment including ventilators required for patients suffering from this illness. We are prepared for this and have scaled up production of medical devices in our manufacturing units to rule out any shortage of devices during this critical time,” said Mayank Lakhani, MD, La-med Healthcare Private Limited.

As far as price regulation mechanism is concerned, we believe that though India is a huge market, a large chunk of the population here lives below the poverty line. We are maintaining a balance between affordability and profit margins. At a time like this, we are not looking for skyrocketing profits, which might be beneficial in the short run, but will eventually hurt the sector in the long run. We need to work along with the government to strike a balance and raise concerns, whenever we feel that this is hurting the competition in this sector, he added.

Talking about the regulatory environment, Lakhani remarked that Central Drugs Standard Control Organisation (CDSCO)’s SUGAM facility of online submission for licensing and renewals is good as it is a transparent and streamlined process. It will eliminate one-on-one interactions with the officials and reduce paperwork to be submitted to different ministries and departments. Transparency in the process of granting licenses and their renewals will boost the confidence of market players.

Union ministry of health has also now brought medical devices under the Drugs and Cosmetics (D&C) Act to regulate the sector from April 1, 2020 as notified by them. Some devices of utmost importance are notified under the act to strike a balance between affordability and the need of patients in a hugely populated country with a majority from the low-income group. The Indian market is moving towards self-regulation which has its own pros and cons. Not to forget that the same act is asking for imprisonment of 10 years or with fine of Rs 10 lakhs.

The company has products like CVC Kit with NF1, three-way stop cock with NF1 and NF2 in the critical care division. Also, product Link CT with Check valve is among the most important product used for the MRI scan of patients. The company’s products are CE marked from DNV GL PRESAFE Norway and are registered in more than 55 countries across the world.

The company clocked revenue of Rs 20.5 crore in the last quarter and is on track to achieve target of Rs 100 crore for financial year 2021 on the back of organic as well as inorganic expansion.

“MSMEs in medical devices field are provided with subsidized interest loans. In addition, they are charged with lower power tariffs and an initial capital investment for the players to start up their businesses. Lower duties on the raw materials and a reduction in rate from 13% to 12% with the coming of new GST regime further lowers our cost of production which gives us an edge over the outside players,” Lakhani concluded talking about government’s industry friendly policies.

India is the fourth largest medical devices market in Asia behind China, Japan, South Korea and is among the top 20 medical devices market globally. The Indian medical devices market is poised to witness a growth from US$ 3.9 billion in 2015 to US$ 50 billion by 2025. This amounts to 1,182 per cent growth over a decade.

Government has already allowed 100 per cent FDI through automatic route and the introduction of The Devices (Amendment) Rules, 2020 has brought transparency and accountability, a huge boost to the sector in the long run.

Source: www.pharmabiz.com