RFCL, in the span of a year since its acquisition by ICICI Venture Fund from Ranbaxy Laboratories Limited, has restructured itself as an organization set to emerge as a globally respected company in the field of life sciences and laboratory solutions, by providing quality products and services and by creating winning relationships.Armed with greater focus and goal oriented approach, RFCL is poised for a quantum jump in growth through its four strategic business units, namely: Rankem - Total Scientific Laboratory Solutions Provider; Diagnova - In vitro diagnostics; Vetnex - Next Generation Veterinary Solutions Provider and NeoSynth - Partners in R&D. These four business segments cover the expanse of life sciences and industrial solutions including pharmaceuticals, biotechnology, R&D laboratories, food processing, veterinarians, as well as in vitro diagnostic facilities in clinical labs, hospitals, and nursing homes. Sushil Metha is managing director of RFCL Ltd. In an e-mail interview with Anil Mathew he deliberated at length on the global scenario, latest trends, uses and future trends of in vitro diagnostics business. Excerpts:
Could you please give us a picture of global in vitro diagnostics market and its estimated growth rate?
Global IVD market is 34 bn USD. Top players in the global IVD market are Roche Diagnostics, Abbott Diagnostics, Becton and Dickinson, Dade Behring, Beckman Diagnostics, Ortho Clinical Diagnostics, Biomerieux, Arkay, Diagnostic Products, Cytyc and Gen Probe.
What are the latest trends in in vitro diagnostics?
The global IVD market is growing at a rate of 7 per cent. The largest chunk of the market is held by the USA, which constitutes 37 per cent.
In USA, Western Europe and Japan the market is growing at 7 per cent. The market is growing in the rest of the world at 11per cent. In India it is growing at 15-20 per cent.
The Indian market growth will be driven by:
#.Increasing health awareness, demand / affordability for quality healthcare
#.Change in demographics and prevalence of diseases
#.Increasing path lab chains & reach of path labs in towns and rural areas
#.Development of CROs
#.Increased number of insured lives
#.70 per cent decision of doctors based on lab reports - Medico Legal implications
How profitable is in vitro diagnostics business for the company?
It is a profitable business and the value contribution to the company is expected to grow significantly in the coming years.
What is the current market of IVDs in India? Which are the major players in the field?
The current IVD market in India is of Rs.1250 crore.The major players are, Tulip Group, Transasia, Roche, Abbot, Biomerieux, Biorad, Dade Behring, Beckman, Bayer. Diagnova and J Mitra.
What are the future prospects of IVDs?
Molecular diagnostics and pharmacogenomics are the future markets for IVD.
Since these are having the fastest growth rate of 25 per cent diseases like cancer likely to be tested using molecular diagnostics and treated using pharmacogenomics.
Demand for point of care tests is also on the rise, as the demand for real time results increases. The market will continue to grow at 15-20 per cent for the next 5 years in India given the presence of the current growth drivers.
Which are the major areas of IVD application?
Point-of-Care, clinical chemistry, immunoassays, molecular assays, hematology, coagulation, microbiology and virology, blood banking and histology and cytology devices.
IVDs are used in:
#.Point of care- rapid diagnostic tests which can be carried out in the physician's chamber or near the patient's bedside.
#.Clinical Chemistry: Tests for the levels of metabolites of human biochemical pathways in the blood and other body fluids for evaluating organ function tests.
#.Immunoassays: Tests for the detection of immunological substances like antigens and antibodies in the blood and other body fluids which may indicate presence of and stage of diseased condition for diagnosis, prognosis and monitoring of infections and diseases.
#.Molecular assays: Detection of the genetic substance of the infectious organism in the blood. eg. Polymerase Chain reaction (PCR). These tests facilitate early detection and diagnosis.
#.Hematology and coagulation: Study of the blood and its components
#.Microbiology and virology: Study of microbes or microorganism by various methods such as staining and the use of culture media, in the diagnosis of infectious disease. The study of viruses. Methods used include tissue culture.
#.Blood Banking: It involves the transfusion of safe blood from the donor to the recipient. Safety of blood is ensured by blood grouping, cross matching and screening for various pathogens, which can be transmitted by infected blood, like HIV, HBsAg, HCV, Syphilis and Malaria.
#.Histology and Cytology: Pathological examination of tissues and cells by microscopy, in the prognosis, diagnosis and monitoring of disease.
What are the factors contributing to the growth of in vitro diagnostics business?
The factors contributing to the growth of in vitro diagnostics business are:
#.Increasing health awareness, demand / affordability for quality healthcare
#.Change in demographics and prevalence of diseases
#.Increasing path lab chains & reach of path labs in towns and rural areas
#.Development of CROs
#.Increased number of insured lives
#.70 per cent decision of doctors based on lab reports - Medico Legal implications.
#.Change of disease patterns from infectious disease in 2004.
#.Average life expectancy increased from 63.3 years in 2004 to 65.1 in 2007.
How reliable is IVDs in terms of safety, quality and performance?
IVDs is non invasive. It comprises of in vitro tests, which are carried out outside the body and thus are safe.
In vitro tests have matured to reach the desirable level of Quality and Performance over the last 15 years and proving to be an important tool for physicians for assisting in the objective diagnosis of disease.
Please mention about your diagnostics business and measures taken to expand it.
We are present in all segments of the In Vitro diagnostics business with instruments and reagents.
Measures taken to expand the business:
#.Emphasis on customer service
#.Identified disease segments where we need to be present.
#.Introduction of novel new age markers.