Regenix Drugs in marketing tie with Welch Allyn

CHENNAI: Newly-promoted Regenix Drugs has forged a pact with Welch Allyn, a leading global manufacturer of frontline medical products and solutions. The business arrangement with the closely-held entity is expected to generate Rs 50 crore revenue for Regenix in a year.

Before this agreement, Welch Allyn’s presence in India was through the WHO, tender process and local distribution partners. This is the first time that the New York-based Welch Allyn has forged a direct alliance with a pharma company on a national basis in India, Regenix CMD A Ramamurthy told ET here on Tuesday.

According to the MoU, Regenix will initially distribute and market the products in India. Regenix is also authorised to meet military and other government tender requirements. The agreement will further enable Regenix to manufacture this equipment in India. Currently, direct selling and tenders generate Rs 40-crore revenue for Welch Allyn.

The $500-million-plus Welch Allyn is known for its flagship brand ‘Tycos Stethoscope’ and wireless monitors. Through the five-year all-India marketing pact, Regenix has laid out a roadmap to help the company distribute, assemble and manufacture products and also develop no-critical components for the healthcare sector. The 100-year-old firm also manufactures automated blood pressure monitors, blood pressure recorder with non-gear technology and PC-compatible ECG machines.

This is expected the to help the company in clocking a Rs 500 crore turnover by 2012.

Floated as a new venture by the former Grandix promoter, as on date, Regenix has managed to raise Rs 13 crore of the targeted equity base of Rs 25 crore, he said. As Regenix cannot serve the domestic drug market, due to the non-compete clause of Grandix sell-out, it will ride on the new business partnership with Welch Allyn to distribute its product range in the first year of operations, he added.

In the subsequent years, Regenix will assemble and manufacture the products and non-critical components. “In the first year, we expect the new partnership to fetch us Rs 50 crore revenue,” Dr Ramamurthy said adding he is now in the phase of formulating the business plans.
To tap the booming contract research and manufacturing (CRAM) business, Regenix is setting up a facility in the SIDCO pharma estate, Alathur, near Chennai.
Already, Rs 5 crore has been infused into the under-construction 40,000 sq ft facility. Conforming to US Food and Drugs Administration (FDA) norms, the R&D and manufacturing