Tamil Nadu start-up takes surgical strides in healthcare biz

The sold-out promoter went on to start Regenix, a healthcare company. It had raised Rs 20 crore from 2,500 doctors hailing from across the state. Crossing the Rs 100 crore turnover for the fiscal ending March 2017, Regenix, based out of Chennai, is chalking out strategies for its next phase of growth.

After meeting the non-compete clause requirements and hurdles in the form of entry barriers, Regenix built a business with access to advanced technologies through foreign collaborations. “Our approach has been to first establish the market, and then create manufacturing capacities to cater to the vast customer base,” says Dr A Ramamurthy, the CMD who dons a doctor’s role for half the week, serving patients in his hometown, Tiruchendur - a routine he has been following religiously for several years. 

A first-generation entrepreneur, his practice in Tiruchendur finds patients thronging in from Chennai and Coimbatore. Having quit a government job, he set up a small hospital there to cater to the needs of a 40,000-odd population. 

For half the week, the doctor diligently goes about his “business” enterprise pouring over spreadsheets and presentations. Its chain of 62 pharmacies generates over Rs 60 crore of the current turnover of Rs 103 crore. With Rs 30 crore coming from the pharma manufacturing business, 30 of its diagnostic equipment labs contribute Rs 12 crore. 

Regenix plans to boost retailing by reaching the 100 stores mark in three years, by which time, it also has plans to add 20 labs. In the Biotech segment, which contributes Rs 10 crore of the revenues, Regenix has a pact with a company in Italy that gives it access to a ‘pap smear’ product used in drug development. 

“We have exclusive rights for this in India as this liquid technology is available only with three other global companies such as BD and Hologic,” Dr Ram says, stressing on the need to shift from conventional pap smear detection tests to the technologically-superior and advanced method. Typically, a single test works out to Rs 1,500 to Rs 2,000, whereas Regenix claims to offer the liquid based cytology pap smear test for Rs 130. He outlines the three-pronged strategy to help him achieve the goal. Pharma, bio-tech and diagnostic equipment are the key growth drivers for Regenix, which bagged an export order from Guatemala, in Central America. 

“We got an order to supply six products while we continue to explore new markets. We have already started exporting to Philippines, while our entry into Africa is in the initial process,” Dr Ram says, noting that the registration formalities for exports takes a year. 

Regenix aims to export to 10 countries in the coming years. The firm has also tied up with foreign players to avail of the twin benefits of new technology and cost advantage. It has a collaboration with a Japanese partner, enabling Regenix to offer a first-of its-kind ulcer treatment drug in the domestic market.  

Regenix’s pharma vertical operates on an outsourcing model. “We are present in four southern states in the formulation, development and marketing operations. The manufacturing activity is outsourced. We have our manufacturing unit in Chennai which is also a hub for innovation,” he said, adding 16 pharma products (existing formulations) are in various stages of development. 

In January, this year, Regenix entered a tie-up with the North China Pharmaceutical Company (NCPC), giving it a platform to position itself in the recombinant erythropoietin product space. “The product, which caters to kidney disease patients, is under registration process,” he says, dwelling on the DNA based technology. 

NCPC is a leading pharma manufacturing company in China that was established in 1953. Regenix, which has a roadmap to grow organically and inorganically, is targeting a turnover of over Rs 125 crore for fiscal ending March 2018. 

“We plan to list our company on the bourses by 2020-21. This is aimed at giving us enough room to pursue research and manufacturing work in biologicals and biosimilars, that are new areas of focus,” he sums up.