India’s Diagnostics Industry is Getting a Makeover. Agilus CEO Dr. Anand K Explains How
By Arunima Rajan
In an exclusive conversation with Healthcare Executive, Dr. Anand K, Managing Director & CEO of Agilus Diagnostics Ltd, breaks down how the industry is shifting from a fragmented network of standalone labs to a more structured, scalable ecosystem—driven by the rapid expansion of national and regional players.
How would you describe the current state of the Indian diagnostic sector, and what key trends are emerging?
The Indian diagnostic sector is undergoing a rapid transformation, driven by increasing demand for quality healthcare, greater consumer awareness, and advancements in technology. The industry is evolving from being largely unorganised to more structured, with national and regional players expanding their footprint. Digitalisation, automation, and AI-driven innovations are enhancing efficiency and accuracy, while the focus on preventive healthcare is further propelling growth. At the same time, the industry needs minimum standards and governance, ensuring better compliance and service standards.
Another key shift is the evolution of genomics and next-generation diagnostics, which are redefining the future of disease detection and treatment. Companion diagnostics, precision medicine, and personalised treatment approaches are gaining momentum, allowing clinicians to tailor therapies based on an individual’s genetic profile. This is particularly transformative in oncology, where molecular diagnostics enable targeted treatments, improving patient outcomes while reducing unnecessary interventions.
Dr. Anand K, Managing Director & CEO, Agilus Diagnostics Ltd
With aggressive pricing strategies on the rise, how are price wars impacting the market, and do you view them as a threat to quality or a driver of innovation?
The Indian Diagnostic Industry operates at one of the lowest price points in the world, primarily driven by volume based efficiencies which also drives affordability and accessibility. If you compare to the US, our costs are one eighth and half the price if you compare it to New Zealand. Test prices have remained flat, in some cases test prices have even come down drastically (genomics based specialised tests) and some tests have increased by 5 to 10% at best. Over the last five years, while the consumer price index (CPI) price inflation has grown by around 30%, tests prices have remained the same or gone up only marginally. In addition, today in India, a customer in tier 2 town or a tier 1 city can access the tests at the same price because legacy players have strengthened their network and built logistics capabilities that make it possible.
Having said that, price wars remain a challenge for the sector with aggressive pricing strategies being used to gain market share. While affordability is critical in a price-sensitive market like India, constant undercutting can put pressure on quality and service levels. There is a fine balance between making diagnostics accessible and maintaining the high standards that patients deserve. Rather than engaging in price wars, true innovation lies in enhancing operational efficiencies, optimizing logistics, and investing in digital capabilities that improve turnaround times without compromising accuracy.
The sector is facing significant volume and pricing challenges—how does Agilus Diagnostics balance scaling operations while maintaining competitive pricing and high service quality?
Agilus Diagnostics is deeply committed to this balance. Scaling operations while maintaining competitive pricing and high service quality requires a multi-pronged approach. We leverage technology to streamline processes, from AI-powered digital pathology to automation in sample processing, ensuring efficiency at every step. Our hub-and-spoke model allows us to expand reach while centralizing complex testing, optimizing both costs and quality. Furthermore, we focus on customer-centric solutions, including tailored packages, seamless digital access, and transparent reporting, which add value beyond just pricing.
In parallel, we have consistently remained at the forefront of introducing new tests and technologies to enhance patient care. Our genomics portfolio has seen significant expansion with the launch of advanced tests such as pharmacogenomics, which helps personalise drug therapy based on an individual’s genetic makeup. We have also introduced the Claudin 18.2 test, a breakthrough in targeted therapy for gastric and pancreatic cancers. Additionally, we are adding Lucence’s proprietary tests to our portfolio, further strengthening our capabilities in liquid biopsy and precision oncology. Our partnership with Lucence Singapore strengthens our ability to provide world-class cancer diagnostics, offering oncologists and patients access to precision-driven solutions. To ensure faster and more accessible oncogenomic insights, we have also streamlined our reporting processes, enabling three-day turnaround times for critical cancer diagnostics. These advancements underscore our commitment to innovation, ensuring that we not only keep pace with the evolving landscape of precision medicine but also set new benchmarks in diagnostic excellence.
Looking ahead, the role of diagnostics in healthcare will undergo a fundamental shift. It will no longer be measured merely in terms of test cost but rather in terms of the overall value it provides in shaping patient outcomes. Diagnostics play a crucial role in disease detection, treatment selection, and monitoring, directly influencing the effectiveness of medical interventions. As the industry moves towards more personalized and targeted treatment approaches, diagnostics will be seen not as an expense but as a critical value driver in the patient journey. Agilus Diagnostics is at the forefront of this transformation, ensuring that our advanced diagnostics contribute meaningfully to clinical decision-making, improve patient outcomes, and ultimately reduce the long-term cost burden on the healthcare system.
What do you believe is steering the increased traction in the diagnostic sector, and can you share examples of how factors like technological advancements, consumer awareness, or regulatory changes are influencing demand?
Several factors are driving increased traction in the diagnostic sector. The growing burden of non-communicable diseases has heightened the need for regular screenings, while the COVID-19 pandemic accelerated consumer awareness regarding early detection. Technology, especially digital pathology and genomics, is enabling more precise diagnoses and better patient outcomes. Additionally, regulatory shifts are shaping a more structured ecosystem, ensuring trust and reliability in diagnostic services. For instance, the push for NABL accreditation and stricter compliance norms are raising industry benchmarks, fostering higher service quality across the board.
Looking ahead, what are your expectations for the diagnostic sector in India over the next few years, and how is Agilus Diagnostics positioning itself to adapt to potential market shifts and sustain growth?
Looking ahead, the diagnostic sector in India is expected to grow significantly, driven by deeper penetration into Tier 2 and Tier 3 cities, increasing adoption of home testing, and advancements in AI-led diagnostics. At Agilus Diagnostics, we are strategically positioned to lead this transformation. Our focus on digital healthcare solutions, AI-driven diagnostics, and robust quality control mechanisms ensures that we stay ahead of market trends. By continuously investing in innovation, expanding our footprint, and strengthening our service offerings, we aim to shape the future of diagnostics in India while maintaining trust and excellence at our core.
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