Date:23/04/2005 URL: http://www.thehindubusinessline.com/2005/04/23/stories/2005042301600200.htm

Back Max India bets big on clinical research — Targets $100-m revenue in 5 years

Nithya Subramanian

Mr B. Anantharaman, Joint Managing Director, Max India Ltd. - Ramesh Sharma

New Delhi , April 22

THE clinical research business, Neeman Medical International, may turnout to be the next big cash cow for Max India.

From the present revenue of $6 million (around Rs 26 crore), Max India hopes to achieve $100 million in the next five years.

Speaking to Business Line, Mr B. Anantharaman, Joint Managing Director, Max India, said, "With the patents regime in place, we expect an exponential growth in clinical research. Earlier, the absence of patent protection was acting as a dampener to most pharmaceutical companies and research sponsors. Now, we expect more work to come to India. We have a very healthy order book."

The order book has been growing by 48 per cent on a quarter-over-quarter basis with gross margins of 52 per cent. Its customers include major pharma companies such as GSK, Wyeth, Pfizer and clinical research organisations (CROs) such as Quintiles and PPD. "We will try to get research not only to India but also talk to them for business in Latin America and North America too," he added.

The company operates in three geographical locations - North America, Latin America and India. While internationally, Neeman offers site management services to on-going clinical research projects, in India it works like a CRO and helps clients get regulatory approvals.

"Neeman Asia (Indian operations) has already turned profitable on a net income basis and our USP is the high patient retention rate of over 90 per cent," Mr Anantharaman said.

What this means to the sponsor is that he does not have to take a financial loss if the patients do not turn up.

This is important for sponsors in shortening the time in bringing the drug to the market.

Elaborating on the Latin America business, he said that the company is expanding into Brazil, Argentina, Mexico and Nicaragua by establishing an alliance with clinical sites in these countries, providing them with training and making their clinical research sites world class.

"Our business development team in the US will be sourcing business for them," he added.

Mr Anantharaman said the company is creating the back-end infrastructure for large-scale trials and will be announcing a series of alliances and tie-ups shortly.

Neeman will also increase its therapeutic expertise in addition to its existing capabilities in ophthalmology, interventional cardiology, rheumatology and psycho geriatrics.