Span Diagnostics to excel in In-Vitro Diagnostics

Mr. Veeral Desai, Managing Director, Span Diagnostics, holds a bachelor degree in pharmacy and is associated with the company since 1991. He is driving force behind bringing in newer technologies and modernizations of manufacturing facility. He has been inspiring force behind many unprecedented decisions like implementing SAP, modernizing plant, introducing automation, upgrading manufacturing facilities to meet with US FDA standard, divisional sing marketing etc.

http://www.span.co.in/company/overview/milestones_history.htm

Span Diagnostics was reorganized in 1976, with an emphasis on in-house R&D to develop more and more products, keeping the customer needs in focus and quality under constant vigil. Dr. Pradip K. Desai, evolved into a start-up company in 1972, as Desai Laboratories. The goal was to indigenously develop and manufacture a comprehensive range of ready-made diagnostic reagents needed by clinical pathology laboratories. The initial efforts yielded success and SPAN became a private limited company in 1981.The company went public in 1994,to bring in more resources and expand further. Concurrently, Span Diagnostics Ltd. with a strengthened marketing & distribution network, emerged as a leader in Indian diagnostic market. Today, SPAN – a legendary name in the industry, is reckoned for its wide range of quality products and dedicated services under the purview of ISO 13485:2003 & ISO 9001:2000.The company operates through strategic marketing divisions, ensuring focused approach to specific customer segments. The company came up with 1:1 bonus issue in July 2010 rewarding the shareholders amply

About product portfolio & size of the industry

In-Vitro Diagnostics Industry (IVD) currently accounts for 2.5 % (Rs.18bn) of the Indian Healthcare market. The IVD Reagent market size is pegged at Rs 6bn and the IVD Instruments market size is worth Rs12bn. The IVD industry is growing at the rate of 18 % annually and is expected to continue to grow at the same rate for the next five years.

The company has strong presence in domestic market with Blood banking, Infectious disease, Clinical Chemistry and Hematology products and has more than 50% market share (in terms of number of tests) in HIV, HCV, Tuberculosis, Syphilis, Typhoid and Malaria. Span has significant market share in Blood Grouping reagents, Clinical chemistry reagents, Rheumatology and Hematology. Span Diagnostics is pioneer in taking initiative for developing and launching diagnostics for world's neglected diseases like Cholera, Filaria, Kala-azar, Plague and malaria.

Some of the new trends witnessing in this segment
The increasing awareness about health has brought about an increase in lifestyle-related diseases or symptoms diagnosis. Earlier, only in case of any visible symptoms patients were referred for diagnosis of specific symptoms. But now the diagnosis is performed routinely as a preventive measure.
http://www.span.co.in/Portal/News/2_1_Corporate%20India.pdf
Products giving  more revenues
Major revenue comes from infectious disease diagnosis (HIV, HCV, Tuberculosis, Syphilis, Typhoid and Malaria), followed by hematology (Blood Grouping reagents and Cell counter) and Clinical chemistry (Liquid stable reagents for auto analyzers). Currently, the company exports its products to more than 90 countries through its distributor network contributing 10% of the total revenue. Major export is in the region of Latin America, Africa and Russia.

About clients
The total number of clinical laboratories in India is between 38,000 and 40,000. Out of which more then 90% labs uses one or the other reagents manufactured by Span. Apart from these, Span also has been successfully making supply of HIV test kits for National AIDS Control program since last 8 years and Malaria test kits for Malaria Control program since last 5 years in various government programs.
http://www.span.co.in/company/resources/sales_distribution.htm

About recent capex and Plans
The major investment to the tune of Rs12 to 15 crore has been incurred mainly for modernization and capacity expansion of our plant and make it compliant to US FDA requirements. Part of it has been used for technology acquisition and export market development also.

Company plans to enter into high-end emerging technology platform of molecular biology, introduce novel and advanced rapid tests and enter physician labs with innovative Point of Care Tests based on monoclonal antibodies and recombinant antigens developed and manufactured in-house. Company has made significant investment for indigenous development & manufacture of instruments and the first product has been launch in financial year 2012.
http://www.span.co.in/company/resources/manufacturing.htm
Target for this year and for next five years
The company will continue its 20% growth trajectory for next  years and from FY2014,
the growth momentum will increase significantly due to the new products launched during that year.
http://www.span.co.in/downloads/Audited-financial-result-March-2011.pdf

Updates
Span Diagnostics Ltd has informed BSE that the Company has received a prestigious order worth Rs. 21.45 Crores from Ministry of Health & Family Welfare, Department of AIDS Control. National AIDS Control Organization, Government of India through RITES Ltd. for supply of HIV (Rapid) Test Kits. The deliveries are to be made within a period of 9 (Nine) Months.
http://www.bseindia.com/stockinfo/anndet.aspx?newsid=818503c1-f324-49f5-b660-0c35c835b213