Motilal Oswal invests $32m in Indian TB diagnostic player
Motilal Oswal Private Equity (MOPE) has committed INR2.4 billion ($32.4 million) to Molbio Diagnostics, a molecular diagnostics manufacturer that specializes in low-cost diagnosis of tuberculosis and other diseases.
MOPE is investing out of India Business Excellence Fund III, (IBEF III) a INR23 billion growth equity vehicle raised in 2018.
Molbio, founded in 2000, manufactures Truenat, a molecular sample-based testing machine. It claims the battery-powered device can diagnose 22 infectious diseases such as tuberculosis (TB), H1N1, dengue fever, HIV and hepatitis within an hour.
Truenat was developed with the assistance of The Foundation For Innovative New Diagnostics, a Switzerland-based medical non-profit organization. The product was commercialized last year, following the successful completion of clinical trials.
Truenat is an alternative to GeneXpert, which is made by US-based Cepheid. According to a peer-reviewed academic article available on public access journal PLoS One, Truenat was found in a study to be equally effective at diagnosing TB among HIV-negative adults. Truenat is estimated to be costlier over a five-year period, but this was attributed to treatment costs in the two locations where the patients were studied. It is also deemed easier to deploy as a point-of-care solution, given there is no need for electricity supply.
While GeneXpert is currently the only World Health Organisation-endorsed molecular test for TB, Truenat received consideration in a December meeting. The final guidelines are expected to be announced in April. GeneXpert’s newest device - Xpert MTB Ultra – will also be evaluated.
“Molbio has successfully innovated the world’s first point-of-care molecular diagnostic platform and is a true testament to 'made in India’ for the world. Molbio’s business model of close-ended diagnostic platform with multiple test assays has strong potential across the globe, both in public and private sector,” said Vishal Tulsyan, a managing director at MOPE, in a statement.
According to the latest Global Tuberculosis Report, there were 2.69 million individuals suffering from the disease in India in 2018, which equates to 27% of cases worldwide. In 2017, the Indian government announced a plan to eradicate TB by 2025.
Previous investments from IBEF III include non-banking financial company MAS Financial, auto components supplier Happy Forgings, incense producer N. Ranga Rao & Son, and Symbiotec Pharmalab, a developer of steroid of hormone products.
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