Morepen Laboratories - getting into diagnostics

New Delhi-based generics major Morepen Laboratorie
18 January 2001

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.