The Hyderabad-based Relisys Medical Devices is setting up Asia's first catheter manufacturing facility at Ibrahimpatnam near Hyderabad as per US FDA norms. The facility will include a research and development unit, catheter manufacturing unit and stent development unit.
Being set up in two phases, the facility is to cost about Rs 11 crore. The sources told Pharmabiz.com that the first phase with an investment of Rs 3 crore aims at setting up units to produce class II products for US and class III products for Asia, and will be completed by December, 2004.
The second phase involving facilities to produce class III products for US markets will be completed by the end of 2006. As of now, AP State Finance Corporation has sanctioned to part fund the project. The State Bank of India is also willing to extend financial assistance to the programme in later stages, official sources said.
Dr Krishna Reddy, chairman of the company, said, Relisys is trying to develop global quality products at local costs. At present, catheters used in various angiographic procedures in radiology and cardiology, are being imported from US and Europe at a very high cost. Once the production commences at the upcoming facility, the company will be able to produce globally competitive devices.
Commenting on the possible cost benefits, NG Badari Narayan, managing director of Relisys said, approximately 20,000 angiographic procedures are done every month in India using the catheters that cost Rs 4,000. And the catheters that will be produced in the facility may be one third of the amount.
The world disposable market is growing gradually and the catheters market accounts to about 6.8 per cent of the total disposables market, and that will be the target area. And there is a good opportunity for the company as there is no single company in Asia, manufacturing catheters. When asked what are the reasons that there are no companies that had been operating this segment, he replied that tax structure was one of the key factors.
He added, the facility will be a totally integrated facility, where catheters that can be used in neurology, cardiology or urology segments can be produced. He said that Relisys has entered into a consortium with two companies, Hingarh Pharma (Vijayawada) and Dynamic Medical (Hyderabad). Relisys will assist the companies in manufacturing low end products by offering know-how.
The company, formerly known as Care Polymed was established in 1998 with a mission to develop technology-intensive medical products at affordable cost.