By - Anzar Alam

The clinical genomics industry is a specialized field that involves the use of genetic information to diagnose, treat, and prevent diseases. It requires significant investment in advanced technologies, talent acquisition, and research and development, making it a capital-intensive industry. Building a robust clinical genomics infrastructure is essential for providing high-quality genetic testing and personalized medicine. Despite its potential to revolutionize healthcare, the industry is struggling to survive due to various challenges. The question on everyone's mind is "Is the clinical genomics industry dying in India?" The answer lies in understanding the industry's journey, current state, and the challenges it faces.

The clinical genomics market in India can be broadly segmented into three main categories:

1. Prenatal Genomics: This segment involves genetic testing and analysis during pregnancy to detect genetic disorders or abnormalities in the fetus.

2. Postnatal Genomics: This segment involves genetic testing and analysis for children and adults to diagnose and manage genetic disorders or diseases.

3. Oncogenomics: This segment involves genetic testing and analysis for cancer diagnosis, treatment, and management.

These three segments are the primary categories in the clinical genomics market in India and hold immense potential for growth, innovation, and excellence in healthcare delivery, poised to revolutionize the clinical genomics landscape in India.

Timeline:

The clinical genomics industry in India has navigated a dynamic journey since 2010, marked by three distinct phases:

1. Nascent stages (2010-2013): The industry began with a small number of companies offering high-cost genetic testing services, yielding substantial profit margins.

2. Rapid expansion (2013-2018): The industry experienced a surge in growth, driven by the launch of new genetic tests, increased adoption by specialists, and a significant rise in sample numbers.

3. Disruption and consolidation  (2018-Present): The clinical genomics industry in India experienced a period of significant disruption and consolidation from 2018 to the present, driven by the COVID-19 pandemic and intense price competition. Although demand for genetic testing increased, leading to growing revenues, the intense price war resulted in declining profit margins, financial struggles for some companies, and the closure of others. However, some major players have maintained their position in the core clinical genomics market, adapting to the new landscape and focusing on innovative solutions to drive growth.

Challenges:

The industry faces several challenges, including:

1. High capital and manpower costs: The industry is characterized by high capital and manpower costs, driven by the need for significant investment in advanced technologies, talent acquisition, research and development, and high-end infrastructure. This includes significant expenditure on Next-Generation Sequencing platforms, hiring and retaining experts such as molecular scientists, geneticists, and bioinformaticians, developing and validating new genetic tests, and establishing and maintaining state-of-the-art laboratories and equipment.

2. Intense competition and price war: Many companies entered the market during the rapid expansion phase, leading to intense competition. To gain market share, companies reduced prices, compromising their profit margins and the quality of their services.

3. Declining revenue: The COVID-19 pandemic has had a devastating impact on the clinical genomics industry, leading to declining revenue for companies. This decline is attributed to reduced demand for genetic testing, resulting in decreased sample numbers and lower revenue for companies. As a result, the industry has experienced a significant downturn, forcing companies to reevaluate their business strategies and adapt to the new market reality. The pandemic's effects have been far-reaching, affecting not only the demand for genetic testing but also the industry's overall growth and profitability.

4. Market consolidation and company closures: The clinical genomics industry has experienced significant market consolidation and company closures as a result of the pandemic and price war. Smaller companies have been acquired or merged with larger ones, while some have been forced to shut down operations altogether. This consolidation has led to a shift towards routine diagnostic tests, as companies strive to stay competitive in a rapidly changing market. The intense price war has heightened the competition, making it increasingly challenging for companies to maintain their market share and financial viability. As a result, the industry has become increasingly consolidated, with only the largest and most resilient companies remaining operational, cementing their dominance in the market.

5. Limited awareness and adoption: Despite its potential, genetic testing remains a relatively new and underutilized concept in India, hindered by limited awareness and adoption. Healthcare professionals have limited knowledge about genetic testing and its applications, leading to restricted adoption in clinical practice. Moreover, patients are often uninformed about the benefits and limitations of genetic testing, making it challenging for them to make informed decisions about their healthcare. This lack of awareness and understanding has resulted in a significant gap between the potential benefits of genetic testing and its actual utilization, hindering the growth of the clinical genomics industry in India.

Despite the challenges, genetic testing is gaining popularity, with a steady increase in samples day by day.

6. Dependence on investors: The clinical genomics industry in India has become heavily reliant on investors to sustain its operations, drive research and development, and weather financial storms. Companies have had to turn to investors to fund their daily operations, support the development of new tests and technologies, and stay afloat during times of economic uncertainty. This dependence on investor capital has created a vulnerable position for companies, making them susceptible to fluctuations in investor interest and capital availability, and limiting their ability to make long-term plans and investments in their business.

7. Funding Crunch: The present scenario in the clinical genomics industry in India is one of severe funding crunch, with companies struggling to secure investments and capital to sustain their operations and drive growth. This is largely due to investor concerns regarding risk and return on investment (ROI), making it challenging for companies to attract funding.

7. Mass layoffs: The clinical genomics industry in India has witnessed widespread job losses and mass layoffs, primarily due to company closures, consolidation, and cost-cutting measures. As companies struggle to stay afloat amidst intense competition, and pricing pressures, they have been forced to downsize their workforce, resulting in significant layoffs. This has not only affected the livelihoods of skilled professionals but also led to a brain drain in the industry, as talented individuals seek opportunities elsewhere. The mass layoffs have also had a ripple effect on the industry's overall morale, making it challenging to attract and retain top talent.

These factors have cumulatively contributed to the challenges faced by the clinical genomics industry in India. Addressing these challenges is crucial to reviving the industry's growth and potential.

Conclusion:

The clinical genomics industry in India is facing a perfect storm of challenges, including intense competition, high capital and manpower costs, market consolidation, limited awareness, and adoption, dependence on investors, funding crunch, and mass layoffs. These factors have cumulatively contributed to the industry's struggles, making it essential to address them to revive its growth and potential. While the industry has experienced a tumultuous journey since 2010, it is not dead yet. With the right strategies and investments, the industry can overcome its challenges and fulfill its potential to revolutionize healthcare in India. It is crucial for stakeholders, including companies, investors, and policymakers, to work together to create a supportive ecosystem that fosters innovation, adoption, profitability, and growth. By doing so, the clinical genomics industry in India can regain its momentum and unlock its full potential to improve patient outcomes, transform healthcare, and drive economic growth.

Future Outlook

The clinical genomics industry in India has made significant progress in recent years, but it still faces several challenges. The government and regulatory bodies have a crucial role to play in supporting the industry's growth. Will they step in to provide the necessary funding and infrastructure, or will the industry continue to struggle?

Moreover, the industry's dependence on investors raises questions about its long-term sustainability. Can the clinical genomics industry in India ever overcome its reliance on investor funding and achieve sustainability?

Finally, the industry must balance its need for profit with the need for affordable genetic testing and treatment for all. How can this balance be achieved, and what are the implications for the industry's future?

Share your thoughts with us at info@biotechville.com. We'll feature your insights and suggestions in our upcoming articles, where we'll explore potential solutions to the challenges facing the clinical genomics industry in India.

Please follow our WhatsApp Channel and follow us on LinkedIn Instagram and X (Twitter) or @biotechville for daily job & career updates.

Considering a career change from academia to industry but unsure how to begin? Book your career counseling session today

Thank you for sharing with others!

Disclaimer:

The views expressed in this article are solely those of the author(s) and do not necessarily represent the official stance of BiotechVille. The content is informational purpose only and not intended to malign any organization or individual. BiotechVille does not guarantee the completeness, accuracy, reliability, suitability, or availability of the information in this article. Any reliance on such information is at your own risk. BiotechVille reserves the right to edit or remove content at its discretion.