Genomic testing pioneer MedGenome to double test volumes, aims for ₹1,000 crore revenues in 3 years

Bengaluru-based MedGenome Labs, a pioneer in genomic testing in India, is planning an aggressive expansion to more than double its testing volumes and achieve annual revenues of ₹1,000 crore over the next three years. The company, which currently generates around ₹700 crore in annual revenues, has been growing at about 35% a year, says Vedam Ramprasad, CEO, MedGenome.

In an exclusive interaction with Fortune India, Ramprasad said the company is targeting an annual overall growth of about 30%, with 20-25% expected to come from organic expansion and another 10-15% from inorganic growth. “On the genomics side, we plan to do about a million tests annually, up from 40,000-50,000 tests a month. Even then, we are talking about not even 20-25% of what needs to be done. The potential is far larger, seven to eight times of what we are talking about," he said.

MedGenome gets samples from over 45 countries, but 80-85% of volume come are from within the country. Whole genome sequencing is one of the popular tests done by the company. “On the oncology side, we do what is called comprehensive genomic profiling on tumour tissue. Prenatal tests like non-invasive prenatal screening, microarray for antenatal screening, etc. is also very common," Ramprasad said.

The company has three genomics labs, a central national reference lab in Bengaluru which caters to roughly 80% of its genetic testing, a prenatal lab in Mumbai to do basic genetic tests, and an NGS genomics lab in Delhi.

MedGenome has made a few acquisitions over the past two years, primarily to expand its geographical reach and strengthen its market presence. The company’s business model has also evolved from being a pure-play genomics play to integrated diagnostics. “We are also looking at specialized pathology, which can add value. We need to keep changing with the market and business scenarios. But still, our majority revenue continues to be on genomics. Our strategic focus and R&D investments continue to be on genomics”, he said.

MedGenome currently has a physical presence in 110 locations across the country, as they do some amount of pathology and specialised pathology tests.

According to Ramprasad, the field of genetic testing has witnessed significant advances over the past 10-12 years. “We see a lot of awareness among physicians, especially in oncology. We would have saved a lot of lives because of our testing—identifying mutations where there are drugs, identifying mutations where we stop that lethal disease in the next birth etc.," he said.