TCS to buy lifescience service firms in US

Sets a target of $1 billion revenue by 2010.

The lifesciences and healthcare services division of Tata Consultancy Services (TCS) is scouting for major acquisitions in the US.

The company is learnt to have initiated talks with a few leading US-based software companies in the pharma and healthcare services space and is likely to finalise a couple of deals in 2006.

A senior company executive confirmed that since the US offers the maximum business opportunities for its lifesciences division, TCS opted for inorganic growth by acquiring companies catering to the drug discovery-related technology and custom software development for diagnostics, in the US.

TCS sources said the investment in the proposed deals will be "substantial". "We are looking for companies with established capabilities in the area of drug discovery, clinical data analysis and management, regulatory compliance and related service technologies," they added.

The company is now eying the growing opportunity in the lifesciences area, especially with focus on drug discovery, clinical trials, data analysis and related custom software development services for the sector, globally.

TCS is currently the largest domestic company in the segment with the world's top 20 companies in its clientele. Its lifesciences division, which has 2,500 people working across the globe, currently contributes about 4 per cent of its total revenue.

The division, which is growing at over 25-30 per cent "" much higher than the industry growth rate, has set itself a target of achieving $1 billion revenue by the financial year 2010.

"The lifesciences sector is a new growth engine at TCS that provides the entire gamut of offerings, spanning genomics and proteomics, database integration, drug discovery and preventive healthcare. Owing to the growing industry response for the IT-enabled products and services, TCS had initiated a chief information officers' (CIO) club for the lifesciences sector in the country to facilitate discussion of common problems and solutions a year ago," said TCS sources.

Recently, the Danish drug research major Novo Nordisk outsourced a large IT project to TCS for the implementation of offshore clinical operations service.

With this strategic alliance, TCS will provide a suite of data management services that include designing, capturing and coding of trial data gathered from clinical trials run by Novo Nordisk across the globe, from its BPO facility in Mumbai.

NEW VISTAS

Sets a target of $1 billion revenue by 2010

Anticipates organic and inorganic growth

Fresh investments likely to be "substantial"