Opto Circuits gears up for US foray

Opto Circuits India (OCI), a Rs 200-crore Bangalore-based manufacturer of healthcare equipment, has drawn up plans to enter the US market with a range of cardiac care products.

As a first step, the company is getting ready to file its application with the United States Food and Drug Administration (USFDA) to launch its products.

The company, which is also looking at the inorganic route to expand its business in the US, has already initiated buyout talks with a few companies. It has submitted its coronary stents to a select group of cardiologists in various hospitals for clinical trials.

Vinod Ramnani, managing director, OCI, said, "After conducting a study of the US market, we have distributed our products to a select group of doctors. Based on the findings, we will file an application with the USFDA for approval."

The company aims to buy a US firm with a similar product profile, which will give it an early entry into the market. "We have targeted various companies which have products in the patient monitoring segment and are in talks with them," he told Business Standard.

The board would meet here tomorrow to decide the exact course of action, he said without giving details.

Big market

Opto Circuits plans to tap the US market for coronary stents, which is estimated around $4.5 billion. The company expects to make a headstart in the US market as it claims to be the only company to manufacture stents with bio-degradable material as well as drug eluting balloons. The company's stents, marketed under the brand name, 'Dior', will be launched through its European subsidiary, Eurocor.

Capital play

The process of getting the approval from the USFDA will take about 18 months and requires a huge capital outlay. To fund its US foray, the

company recently raised $20 million by issuing preferential shares to a US-based strategic investor and warrants to its promoters.

For the first quarter ended June 30, 2007, Opto Circuits reported a net profit of Rs 23.17 crore, a growth of 124 per cent over the corresponding period in the previous financial year. Sales during the period stood at Rs 61.60 crore, a growth of 98 per cent over the same period last year.