Then why the entry into a much smaller segment like diagnostics, where the company will have to battle it out with big names as Ranbaxy, Johnson & Johnson, E-Merck, Infar and Dr Reddy’s?

According to a company executive, "Existing techniques for making diagnosis in India are still not very sophisticated. Therefore, there is a big scope in the diagnostics market, which is already growing by about 20 per cent per annum. We want to set a precedent by bringing into the country the most advanced, qualitative and innovative products in the field of diagnostics."

Morepen has established a separate division Medipath, for this purpose and has identified two products to begin with. ID Microtyping Systems used in blood group serology and Optimal, a product used to conduct rapid malaria tests.

For the former, Morepen has already tied up with Swiss major, Diamed AG, world leader in diagnostics, which offers a wide range of products globally in the field of blood group serology, haematology, coagulation and infectious diseases and instrumentation. Diamed leads the field in blood group serology, where its product Diamed ID Microtyping System, based on gel test, is used globally. Gel technology enjoys a 90 per cent market share in European countries with global sales of $200 million. Over a million tests are performed daily, worldwide, with ID system making Diamed the world’s number one reagent manufacturer. ID Microtyping System is also manufactured in Florida under the USFDA license.

Is there any guarantee that a product, which sells in other countries, will also sell in India? Answered the company executive, "We have already conducted field surveys, which have shown that the Indian market has tremendous potential. From the two products put together, we are targeting sales of anything above Rs. 20 crore in fiscal 2002."

Approval from the Drug Controller of India has already come through for Optimal and that for ID Microtyping Systems is expected in the next three to four weeks. Company sources said there is a ready market for both the products.

For ID Microtyping Systems the company is aiming at capturing all the blood banks in the country as well as leading private and institutional pathology labs.

Considered to be a major technological advancement over conventional methods, the biggest advantage of ID Microtyping Systems is that stability of reactions is maintained for up to 48 hours. The results therefore can be read or checked long after the tests have been conducted. In comparison, results through conventional methods have to be read immediately due to the non-stability factor. Moreover, tests through Diamed ID cards involve no "Wash phase" in anti-globulin testing, which therefore eliminates the need of skilled laboratory staff and makes the test less time consuming. The tests are simple and rapid to perform and the results can be easily interpreted. The ID cards have a built in control validation, which minimizes the need for an additional check with sensitized cells. ID cards also do not need any outside reagents, as they are already present in the cards unlike in conventional methods. This eliminates the problem of standardization, which is prevailing in conventional methods.

For Optimal the executive said, " More deaths are reported in India out of malaria than out of aids or cancer in India. With the kind of advantages it possesses, Optimal will prove to be another wonder product".

Company executives point out that in comparison to the existing tests, the specificity of tests with Optimal is almost 99 per cent and sensitivity is more than 96 per cent. Moreover, using Optimal, only one test need be performed to determine the difference between P Falciparum and P Vivax, two more complicated kinds of malaria. With conventional methods, two different tests have to be performed to differentiate between the two strains of malaria. Thus, the company believes that tests with Optimal will prove to be more cost effective to the consumer as the outgo will not be more than Rs. 159 per test in comparison to more than Rs. 200 right now, using conventional method. " It is going to be a monopoly product and we also hope to capture a big part of the rural market as well as remote area market as the test is quite easy and simple to perform". Last but the not the least, results through Optimal are ready for being read within ten minutes whereas in conventional methods it could take almost a day before results are deciphered.