Max India managing director Vivek Jetley told The Financial Express that the venture with HMI will broadly be involved in phase three trials, backed by the available knowledge base. The healthcare sector is among the ``new growth engines'' identified by the Delhi-based Max group.

HMI, part of the Harvard Medical School and Harvard University, has 17 affiliated teaching hospitals in the US and a pool of over 7,000 clinicians.On the reported Rs 26-crore acquisition of Fusion Software, a software development company, Jetley said, ``We were looking at Fusion, but there is nothing to it.''

He also said that Max India was not committed to any further investment in Max GB, a 50:50 joint venture with Gist Brocades (GB) of the Netherlands. Max India had earlier reached an agreement with GB wherein the overseas partner would subscribe to fully convertible debentures aggregating around Rs 88.92 crore.

On conversion of these debentures, scheduled between two and seven years of the date of allotment, Max India's holding would come down to 24.9 per cent. ``This would protect us against any downside from an erosion in the value of our investment,'' Jetley added.

On the group's plans to invest Rs 200 crore towards setting up two super speciality hospitals, he said, ``We have moved away to a multi-speciality focus. We have, however, yet to find the right structure/model for this,'' adding that the company's strength lies in the ``healthcare services'' part of the business.

Meanwhile, Jetley also said that a ``best solution'' would have to be thrashed out given Hindustan Antibiotics' plans to service the Mumbai-based RPG Lifesciences. Max-GB and public sector undertaking, Hindustan Antibiotics, already have a penicillin venture, though the PSU has leased out five of its reactors to the RPG group to manufacture vitamin B2 and B12.

``We believe that two is company and three is a crowd. Moreover, there are several real issues involved while servicing two parties. These include issues of confidentiality, contamination etc. We will work out the best solution,'' he said.

opening new vistas
Max India, by setting up a separate entity in alliance with Harvard Medical International, has paved the way for a new business avenue with huge potential. Indian companies, especially subsidiaries of multinationals, have been carrying out phase three clinical trials in India, though mainly for their own products. Considering the huge patient population and the low cost and speed of carrying out these trials, India offers a good base. It is this base that Max India is trying to exploit.