Comparative analysis of market-based health delivery models in rural India

Abstract

The rapid economic growth in India and accompanying demand for improved healthcare, particularly in rural populations, make a compelling case for global pharmaceutical companies to develop new business models to serve these underserved markets. Increasing competition in developed markets and an impending "patent cliff' add pressure to derive innovative approaches to opening new revenue channels. To do so in base of the pyramid markets, firms will need to overcome substantial infrastructure and financial challenges, and navigate a complex ecosystem made up of public and non-profit entities as well as experienced Indian generics manufacturers. This paper describes specific methods being employed by global pharmaceutical manufacturers in rural Indian markets, and analyzes them not only on the basis of sustainability and scalability, but also on the value delivered to the consumer, using Michael Porter's value-based approach to global health delivery. The analysis reveals an opportunity for these companies to expand their reach along the whole health delivery chain, and recommends both short- and long-term strategies that can be employed for them to do so, in a financially sustainable way.