MarketRx mulls acquisition

MarketRx, a provider of sales and consultancy services to pharma, biotech and medical devices companies is mulling acquisition to grow its managed care services offering, Baldeep Dua, chief fainancial officer, MarketRx told Business Standard.

Managed care is the dominant healthcare delivery and financing system in the United States. The system manages and integrates the whole range of services that one needs as a patient.

Earlier this year, the company expanded its portfolio to cover managed care services by building internal capabilities. "We are mulling skills-based acquisitions to grow this offering," said Dua.

In 2003, MarketRx had raised $10 million from angel and private equity investors. "We have not utilised this money till date and have internal accruals as well giving us cash reserves of $15 million," said Dua. "The monies will be used for expansion in India, R&D investments of $3-3.5 million every year and for a possible acquisition," she added.

With over 50 per cent of its global workforce in India, the company plans to invest $20 million in India over the next two years.

"We will invest $8 million in fiscal FY 2007 and $12 million in FY'08," said Dua. The investments will be for ramping up the headcount to 300 by the end of the year from the present 240 people and for adding another 20,000-40,000 square feet of office space in Gurgaon and 200 people in FY'08, taking the employee count to 500 in FY'08 in India.

Client penetration via cross-selling is also high on the company's agenda. "We are looking at harvesting our client relationships and hope to grow our key clients from $10 million to $30 million in the next two years," said Dua.

The company recorded revenues of $32.6 million during calendar year 2006 and expects revenues of $40-45 million during calender year 2007.