IDFC invests Rs 50cr in Healthcare Global

Healthcare Global Enterprises (HCG), a Bangalore-based physician-led oncology care initiative, has raised Rs 50 crore in equity from IDFC Private Equity, to build its cancer care network in the country.

Addressing a press conference here on Wednesday, Dr Ajai Kumar, chairman Healthcare Global Enterprises, said that as part of network creation, HCG will spend Rs 150 crore (Rs 50 crore of IDFC Private Equity money in addition to Rs 100 crore internal accurals) to set up 13 new cancer treatment centres in tier II cities, expansion of Bangalore Institute of Oncology, PET-CT centre and GMP radiopharmaceutical unit, central reference laboratory and clinical trials management centre.

"With a dedicated 'hub and spoke' model, HCG plans to move in to fill the shortage of quality cancer care in tier II cities. Presently, the cancer patients and their families are burdened by the need to travel for extended periods and repeatedly to receive treatment to metropolitan cities," he added.

"Since follow-up care can be delivered in a day-care setting, there is a strong need to establish regional centres with standardised, protocol driven radiation and medical oncology capabilities in the tier II cities there by cutting cost and delivering health care at door step," he further added.

Commenting on IDFC's investment in HCG, Luis Miranda, president and CEO, IDFC Private Equity, said, "IDFC has invested in HCG as growth capital much more than VC for its financially sustainable basis."

Cancer incidences in India is presently estimated at 1 million new cases per year and has doubled over the last three decades. An estimated 3 million patients are undergoing treatment for cancer in the country.

"With high level of cancer incidences, improved screening and diagnosis are needed to further increase the number of patients for treatment," said Dr Ajai Kumar.

HCG in phase I expansion is spending Rs 30 crore on Bangalore Institute of Oncology to provide facilities like more linear accelerators with 3D conformal therapy, IMRT, more operation theatres, nuclear medicine, diagnostics, pharmacy and adding 75 beds to the existing 104 beds, said G Ganapati, director, Healthcare Global Enterprises.

For nationwide expansion, HCG plans to partner local tertiary care centres or physician groups. Presently, HCG has four hospitals under its network to operate its 'hub and spoke' model like Curie Centre of Oncology and Bangalore Institute of Oncology both in Bangalore, Malnad Hospital and Institute of Oncology, Shimoga, Bharat Hospital and institute of Oncology, Mysore and curie Senthil Cancer Centre, Erode.

Imaging is critical to cancer care at all stages of the disease screening, diagnosis, treatment planning and post treatment evaluation and represents a fast growing and source of revenue and profitability for a cancer centre.

"To exploit this, the company is enhancing its imaging and diagnostics capabilities by setting up a PET/CT and cyclotron unit in Karnataka for a budget of Rs 18 crore," said Ganapati.

At present, there is a shortage in cancer care evidenced today in India is in radiation therapy. there are 70 linear accelerators operational in India, where as an estimated 1,000 are needed to service demand from patients, he added.

Under Triesta Science, a clinical research and laboratory services subsidiary, HCG is structuring three areas cancer biomarkers research, clinical trials/CRO services and reference lab services.