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| Roche eyes acquisitions in India |
| P B Jayakumar / Mumbai Dec 27, 2009, 00:30 IST |
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To add diagnostic tools for endemic diseases like tuberculosis, malaria.
Roche Diagnostics, part of Swiss drug multinational Roche Holding AG, plans to acquire diagnostic equipment makers and innovative diagnostic products in India. This will be the company’s first such move since it started operations, half-a-century back.
“We are open to acquisitions and funds will not be a constraint for such transactions,” said Bhuwensh Agarwal, chairman and managing director, Roche Diagnostics India.
The strategy would be to add diagnostic tools helpful in the treatment of diseases that are endemic to India, like tuberculosis, malaria, heart diseases and diabetes. The company had not set any deadline and was evaluating opportunities, he said.
Roche Diagnostics has an annual turnover of 9.7 billion Swiss francs (over Rs 43,500 crore). Its production in India contributes to less than 5 per cent of its global turnover. The company is planning to step up investments in countries like China and India as these markets are growing at over 15 per cent, compared with the global average of 4 per cent.
“What holds us back is the patent protection system in the country, which needs improvement,” Agarwal points out.
He said diagnostics market in India, worth about Rs 1,800-2,000 crore, was now on a high growth trajectory, as advanced diagnostic tools were gaining acceptance even in Tier-II and Tier-III cities.
Of the estimated 140,000 diagnostics labs in the country, less than 2,000 are automated and only 150 have the National Accreditation Board for Testing and Calibration Laboratories accreditation.
Roche Diagnostics, which earns 70 per cent of its Indian revenues from hospital-related diagnostics tools, has increased its headcount by 20-50 per cent every year over three years, mainly to cater to more emerging cities. Presence of diagnostics chains like SRL Ranbaxy, Metropolis, Lal Pathlabs and Thyrocare also helped expand the Indian market, said Agarwal.
Most of the diagnostics equipment suppliers in the country are now focusing on a rental partnership with diagnostics labs to boost business, as this model gave the labs time to pay for the costly equipment, depending on the business generated.
Roche Diagnostics, which exited India in mid-1990s by licensing its products to Nicholas Piramal, had re-entered the country in 2002 with its own set-up, terminating its alliance with the Indian company.
Roche Diagnostics offers applied science research equipment, professional diagnostics products, molecular and tissue diagnostics products and tools for diabetes care.
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