Lupin Launches Diagnostic Labs, To Expand Pan-India

Lupin Ltd. forayed into diagnostics as part of the drugmaker’s strategy to provide integrated healthcare in India.

Lupin Diagnostics, a wholly owned subsidiary, has formally commenced operations, the Mumbai-based company said in an exchange filing.

The company has established a 45,000-sq-ft national reference laboratory in Navi Mumbai, Maharashtra, the filing said. The core facilities of the laboratory include all major diagnostics services, preventive health checkups, and a comprehensive range of tests.

Lupin Diagnostics will provide molecular diagnostics, cytogenetics, flow cytometry, microbiology, serology, histopathology and cytology, haematology, immunology, among others. It has more than 2,500 test menus.

Lupin Diagnostics has 11 regional laboratories and around 200 collection centres across east and west India, with 36 operational centres in Mumbai itself, Ravindra Kumar, vice president & head at the company, said during a press meet. It also intends to provide home collection services.

According to Rajeev Sibal, president of India region formulations at Lupin, while the “entry into diagnostics may seem delayed, only 16% of the market is under the organised sector and there is a lot of potential for growth”.

“The company has launched the business in east and west India, but it plans to soon extend its reach pan-India. Its target is to establish over 100 laboratories and 1,000 collection centres over the next three years,” Sibal said in the same event. Lupin plans to have 90-95% franchises for collection centres and is identifying partners for it.

While all routine and few specific tests will be done at regional centres, more specific tests will be conducted at the national reference laboratory.

“By building on Lupin’s market leadership position, we are well-positioned to lead and shape Lupin’s diagnostics business in India,” Kumar was quoted as saying in the filing.

Core value proposition as identified by Sibal are:

• Temperature controlled sample movement to avoid errors and damage during transit.

• Interactive and detailed reports to customers.

• All laboratories of the company will be accredited by National Accreditation Board for Testing and Calibration Laboratories.

The company, Sibal said, aims to receive this accreditation over the next 18 months. No revenue target or investment outlay, however, was disclosed.

External funding for now is not on the cards, Sibal said. The company aims to grow organically and even look at acquisitions to achieve its target of being in the top five in the diagnostic space.

Shares of Lupin closed at Rs 883 apiece, down 0.5%, compared with a flat Nifty 50.