SHL Telemedicine Ltd. (SWX: SHLTN) has signed its first collaboration agreement with an Indian clinic, as part of its strategy to enter the Indian market. Yesterday's agreement is with Belle Vue Clinic, a specialty hospital in Kolkata (Calcutta), and part of BM Birla Hospital chain.
SHL plans for Indian hospitals to offer its telemedicine technologies, including its new smartheart device, to their patients, as part of their routine out of hospital patient care programs. SHL shall provide the telemedicine service using its advanced telemedicine.
"With cardiovascular diseases threatening to become India’s largest cause of death by 2020 and remarkable growth of private healthcare spending, we foresee a tremendous opportunity in providing our services in the Indian market. SHL will focus first on tier 1 cities with an aggregate population size of over 60 million where the fast growing urban middle class is experiencing rapid growth of income coupled with modernization of lifestyle also leading to increased risk of cardiovascular disease. We expect to generate $1-5 million from each such collaboration over the course of three years and to sign a series of additional, similar in nature, long term agreements with hospitals" said SHL co-CEO Erez Alroy.
Elroy added: "We are investing significant effort in our strategic plan for geographic expansion. The launch of our services in India is a first step in realizing our plan. We are convinced India can serve as an additional significant growth engine for SHL in the coming years"
SHL says that cardiovascular diseases has risen four-fold in the past 40 years, and cites a World Health Organization study, which states that they will become India's largest cause of death and disability by 2020, killing 2.6 million people, half of who will be aged 30-69. It notes that 80% of healthcare costs in India are paid out of pocket, and that the country's rapidly growth growing urban middle class is spending more on private healthcare services.
Published by Globes [online], Israel business news - www.globes-online.com - on March 12, 2013
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