Biotech major Qiagen eyes India

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New Delhi: After firmly establishing its roots in China in last few years, Dutch biotech company Qiagen NV, the largest global player in sample and assay technologies, has now zeroed in on India. The company, which reported revenues of $893 million in 2008 and has spent about $2 billion on acquisitions since 2004, is setting up its office in Delhi, its first one in India, in two weeks time.

Although the office is meant to conduct direct sales and distribution operations, the firm expects to expand its presence significantly in coming years. At present, the company sells products to Indian clients through local distributors.

“This office is just the starting point. Our expansion in India will be commensurate to the opportunities we find here. In course of time, we may consider setting up production facilities and R&D centres as well,” Thomas Schweins, VP, marketing & strategy, Qiagen, told FE. He cited the example of China where the company made an humble beginnings in 2006 with a team of around six people, a strength that has now crossed 150 along with a strong product pipeline for the Chinese market.

China is the largest contributor in its Asian revenues kitty and sales in that country are expected to grow by 50% annually.

Schweins said that Qiagen also hopes to develop customised products for the Indian market. “We have partnered with the Singapore government to develop diagnostic kits, especially for the local market. We hope to replicate the model, work with the government and other stakeholders here to develop products for endemic such as TB or malaria. We also understand that the products marketed in India have to be price sensitive”.

What makes Qiagen’s direct entry into India significant is also the timing. The company has close to $1 billion in available funds, and has made it clear that it would be aggressive on acquisitions. Chief financial officer of the company, Roland Sackers, said that firm might spend $200 million to $500 million on deals next year, buying more companies than in 2009 as prices decline. “It is a good time because we have seen that prices in areas we are looking for such as molecular diagnostics and applied testing have become more attractive than what it was 12-18 months ago,” Sackers said.