30 Minute Interview

'Resperate is a Yoga-based Patented Product'

Nicholas Piramal India Limited (NPIL), which has been in the pharma business for just 15 years, has grown through an aggressive strategy of successfully managed acquisitions, mergers and alliances. NPIL is now marching ahead in the diagnostic segment with a CAGR of 35 per cent. The diagnostic division provides an extensive range of products and service offerings to match customer needs. Resperate—the first and only medical device cleared by US FDA for adjunctive treatment of hypertension—is its latest entrant in the market. George Varghese, Senior Vice President, Lab Diagnostics, gives an insight into NPIL's growth plans to Nancy Singh. Excerpts:

George Varghese Senior Vice President, Lab Diagnostics, NPIL

Tell me about your latest product Resperate.

It is a patented product based on one of the principles of Yoga—a breathing technique, Pranayama. It is a device that is an extension of Yoga. It is the first and only medical device cleared by US FDA for adjunctive treatment of hypertension. It assists breathing in a manner that it slows down the breathing cycle which helps in lowering the high blood pressure rate. It is a welcome addition to the drugs because for an ailment like hypertension, there is no permanent cure and the drugs dosage just keeps on increasing with the passage of time. Though it can be a preventive method, we have introduced it in the market as a treatment device and we are advertising this product mostly in healthcare and wellness magazines.

What are your core strengths?

The biggest strength is that we have a wide network and relationship with leading path labs and hospitals. We are connected to around 4,500 labs across India. We take pride in our infrastructure and scientific base to provide after sales support. We have a dedicated team of 100 people passionate in selling and developing our diagnostic business.

What are the primary challenges in this segment?

Today, we are slipping into a buyer's market scene. Everyone wants a remunerative price and anyone who has buying power demands more, which means wanting best of quality at the lowest rate. But understandably you cannot blame it on the buyer, as we don't have reimbursement in India unlike the West. This drives the lab to resort to such practices and even the cost is borne by the patient.

We are coping with this by following the track, for we cannot afford to go totally against the trend, without compromising on quality. What we are giving is best value for money—good products at a competitive price. The quality of a product is determined by its accuracy rate.

In such products, the chances are that you are right at the first time. With cheaper products you cannot be sure. We arm ourselves with data to say that our results are accurate compared with other products. In fact, some of our products are better than the current market leaders.

How do you plan to tap the upcoming segments?

We see that with growing awareness of healthcare and insurance, the diagnostic market is showing a healthy growth of around 15-20 per cent in India, unlike six to eight per cent globally. In future, a lot of tests which have been hitherto done in the lab will now move to the point of care and doctors will probably do those tests in their clinics. So gadgets which are more easily manageable and user friendly will be introduced in the market. For example, blood glucose testing which was earlier limited in the lab, is not the case anymore. Today, the doctors/patients can manage it themselves. Around 70 per cent of diagnostic market in India is dominated by three segments namely clinical chemistry, immunology and heamotology as opposed to 65 per cent global market. We have now entered into all the three segments with a wide range of product offers.

M&A has been a key driver in NPIL's growth. How has this strategy impacted the diagnostic segment?

This is true, and the same holds good for diagnostics as well. NPIL entered the diagnostic business with the acquisition of Boehringer Mannheim in 1996. We left the same in 2004, with a resolve to build the business anew. We acquired DiaSys Diagnostics India Pvt Ltd for Clinical Chemistry in 2005. In April 2007, we have entered the immunology business with DiaSorin and Radim Group of Italy, through Ezra Brothers. These two companies are well established in Europe and have a good range of products in immunology—Radio-ImmunoAssay (RIA), ELISA and Chemiluminescence.

Any foreign market that you are eyeing?

We are open to discussions and are looking out at prospective partners worldwide.

NPIL is more known for the pharma segment, instead of diagnostics and healthcare. Please comment.

The company's position is not altered. By sheer size in the world market, pharma versus diagnostic is 95:5. But that five per cent is a huge market and lucrative as well. The main focus of NPIL is to expand in such a manner that we are able to synergise and add a greater value.

The association of the hospitals and labs with NPIL as a brand offers greater value and array of services at a high quality.

nancy.singh@expressindia.com