Antibody testing may accelerate after the vaccine is launched: Dr. Arvind Lal

Dr. Arvind Lal, CMD, Dr. Lal PathLabs Ltd., talks about COVID-19 tests, outlook on the diagnostic sector in 2021, expansion plans and market share among others during a candid chat with Swati Khandelwal, Zee Business. Edited Excerpts:

Q: Firstly, the test prices of COVID-19 are decreasing as states are making such an announcement. But it had a 17% contribution in Dr PathLabs Q2FY21 sales numbers. How do you see its contribution in the second half of FY21, when we hear that the vaccine is on its way?

A: Testing has reduced now and you would have followed all newspaper reports that cases are going down. It definitely increased in the past as there was definitely a spike around 10-15 days ago but today it has come down. And, our expectation is that now the testing will also go down because there is a decline in the number of detected cases. Secondly, any day the vaccine can be launched and I think form the first week of January would probably be a better date. After that the testing will change, maybe the government will start antibody testing more, which is known as IGG antibody test. Those who do not have IGG antibodies should get the vaccine first after all the categories, which the government has already set, i.e., first to the healthcare workers than the second line to people who belong to defence and police and then to aged people who have got comorbidities like non-communicable disease (NCDs), diabetes, high blood pressure, cardiac, cancer among others. So, first aged people above the age of 50 and then the next category will be people below the age of 50 having this kind of comorbidities. Keeping these factors in front, hopefully, the COVID-19 pandemic will start receding and this is my wish and the government also expects the same.

Q: What is your outlook got diagnostic sector in 2021? Do you think that people have turned health cautious more, so these centres will have good growth in future? 

A:  COVID tests will reduce in 2021 and tests of old diseases that I mentioned earlier led by NCDs such as diabetes, high blood pressure, cardiac, cancer and stroke among others. The patients who were left behind, whose tests were not happenings will come back. And, we have mentioned in the last quarter results but don’t remember its percentage that old patients are coming back to us.  

Q: What kind of expansion plans do you have and which kind of growth will be seen at the company level? 

A: We have a well laid down strategy because we are very strong in the North, Central and Eastern part of India. We will concentrate more on West and South and it will also include inorganic growth. In fact, we have been in West and South since a long time, it is not that we are unknown here, yes, we can be number two there, we may not be number one but definitely will become number one by this mixture of organic and inorganic growth in West and South. This is our strategic plan.

 
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Q: What kind of market share is expected by expanding yourself in South and West?

A: The complete market share of all the four-five major pathology diagnostic companies is not more than 15% because the number of small players is very high, which you term ‘Mom & Pop Shops’ in English. They are small labs. So, its needle is not going to move a lot on the dashboard and I would like to inform you about it. However, many a little makes a mickle (बूँद बूँद से घड़ा भरता है) and we will keep on trying in the West and South. That is all I can tell you.