Lyka-Hetero Healthcare Ltd has postponed its plans of setting its specialty division on CVS and neurology to April. The company initially had plans to set up the division in the current quarter. Competition from other companies is the main reason cited for the delay in launching the division. "We are skeptical on our plans of setting up the division right now. We are doing a study of the sector based on the parameters of growth, competition and profits. We will go ahead with the project after the result from the study is out," said Dharmesh Shah, director, Hetero Drugs.

The current market size for the CVS and neurology sector is about Rs.1,200 crore, the main players being Sun Pharma, Torrent, and Cadila Healthcare.

Ketan Bhasin, Executive Director, Hetero Lyka Healthcare was however confident about going with the project and said that the company's plans have only been delayed and not denied. The purpose of doing the viability study again is to evolve a better marketing strategy to tackle the competition, he said.

"There are about 110 companies in the diabetology and neurology front. The study being conducted will tell us how to strategize a better marketing initiative against these companies. The study will be completed by February and we will be ready to launch the divisions by April," he said.

According to Bhasin, the company estimates an initial investment of about Rs four crore for setting up the division. The specialty division by the name itself indicates that the division will be more lifestyle-based and the drugs prescribed in the segment can only be prescribed by specialists and not by the general practitioners. "We will be recruiting a special task force for promoting our specialty formulations," he said.

The company will be launching about six to seven formulations in the first year. The entire basket of formulations will be from the Hetero basket.

Lyka Hetero is a 49:51 joint venture between Lyka Labs and the Hyderabad-based Hetero Drugs in February 2002. Rec-DZ, rectal diazepam for the siezure patients and Lecgel, a unique antibacterial vaginal gel, were the initial slew of the JV's products. Apart from these formulations, the company has also launched a slew of products in therapeutic areas like gynaecology, paediatrics, dentistry, dermatology, pain management, psychiatry, and anti-histamines.