Goa-based diagnostics chain, Molbio Diagnostics Pvt. Ltd has acquired a 70% stake in Bengaluru-based Prognosys Medical Systems for an undisclosed sum, the company announced on Monday.
Prognosys Medical Systems designs and builds radiology and fluoroscopy solutions under the brand name Prorad.
The acquisition aims to strengthen Molbio’s presence in the digital radiography space. The combination of the Prorad and Truenat systems will offer a solution for screening and confirming large populations for contagious diseases such as tuberculosis, Covid, and other chest anomalies.
“The majority acquisition of Prognosys Medical Systems Pvt Ltd is yet another step in this direction and helps us expand our 'Universal Access' portfolio. Such solutions are going to alter the way we identify and treat communicable and non-communicable diseases that are currently difficult to eradicate,” said Sriram Natarajan, founder, chief executive officer and director, Molbio Diagnostics.
The company is also backed by Motilal Oswal Private Equity (MOPE), a subsidiary of Motilal Oswal Financial Services Ltd, which invested up to Rs 240 crore (around $32.5 million) in 2020. Molbio offers PCR (polymerase chain reaction) tests for infectious diseases and received prominence during Covid.
Founded in 2000, Molbio and its subsidiary Bigtec Labs develop and commercialize Truenat, a platform that uses PCR technology to detect at least 22 infectious diseases including tuberculosis, swine flu, dengue, and HIV. According to the firm, the platform can deliver results within 60 minutes at an economical price point.
Since 2000, it has collaborated with several domestic and international institutions, including the Council of Scientific and Industrial Research, the Indian Council of Medical Research, and Grand Challenges Canada. The firm and its subsidiary Bigtec Labs develop and commercialise Truenat, a point-of-care molecular diagnostics platform that uses polymerase chain reaction (PCR) technology.
The diagnostics firm's financial results were propelled significantly through FY21 by the Covid-19-related testing frenzy. Molbio clocked revenue of ₹1,272 crore in the fiscal year ending March 2021 against ₹51.5 crore in FY20, as per regulatory filings, a jump of nearly 25 times.
The person cited above said the company this year will clock around ₹850 crore in FY22 as the demand for COVID-19 testing has waned after FY21. The company reported a profit of ₹472.7 crore in FY21 compared to a loss of ₹16.27 crore in FY20, filings showed.