Diagnostic company achieves export success in Africa

This translation originally ran on http:/www.svensktnaringsliv.se/fragor/globalisering/diagnostikforetag-gor-exportsucce-i-afrika_106825.html

The future of Sweden's export industry lies in emerging markets where demand for new innovations is greatest. Realizing this, Swedish diagnostics company Cavidi set out to develop HIV tests tailored specifically for resource-scarce developing countries. Today, 94 percent of the world’s 33 million HIV-positive people live in developing countries. Nearly 23 million of them are in Africa – largely concentrated in sub-Saharan Africa, according to UNAIDS. It’s a huge problem with huge potential for a company that develops and markets diagnostic products for HIV.

“HIV testing is dominated by machines that are complex, expensive and demand a lot from laboratories," says Cavidi CEO John Reisky de Dubnic. “In the West, where many anti-retroviral drugs are available and an HIV patient’s medication is regularly monitored, this isn’t a problem. However, in many poor countries where a doctors' biggest challenge is getting the drugs in the first place, monitoring viral levels is a low priority and often not measured at all. This means resistant strains of HIV develop and spread a lot faster.”

Cavidi’s solution was to develop tests that require simple labs, place fewer demands on staff and identify several types of HIV – all at a lower cost without compromising quality. This led to the 2002 launch of their biggest commercial success: ExaVir Load.

“Recently, the treatment of HIV in developing countries has improved. You still need to work in simple labs, but our goal is ultimately for physicians to be able to perform HIV tests in clinics in rural areas," says Reisky.

So far, testing kits have been delivered to some thirty countries, primarily in Africa. But focus has begun to shift to include India and Southeast Asia where similar challenges exist.

“Within three years, we plan to be producing tests locally in India, Africa and China,” says Reisky.

CIO Kajsa Löwenhielm explains that Cavidi’s top priority during product development and commercialization is visiting and learning about the countries and laboratory environments where the product is meant to be used.

“You can’t sit in Sweden and imagine what the situation is like in a hospital laboratory in Kenya or what problems they face on a daily basis. You have to go there to understand the reality," she says.

In local markets, Cavidi has established contacts with key people within the health ministry and the healthcare sector, with their relationships within the scientific community often serving as a door-opener. Local distributors and partners have since been allowed to engage the end customer.

“You have to be prepared for lengthy sales processes. It can take months, even years, before an agreement is finalized," Löwenhielm says.

Still, Löwenhielm is surprised by the lack of networks and knowledge about developing countries in Sweden.

“As a small player, you have to find most of the answers yourself if you want to invest there. There are few organizations to turn to. Many people seem to think the area is too insecure. But we have to dare to invest there, the need is too great to ignore," she says.

Cavidi AB The company got its start in Uppsala, Sweden where researchers Clas Källman and Simon Gronowitz founded Cavidi Tech AB to develop HIV diagnostics in 1995. From the beginning they had Africa in mind. There was a great need for simple and reliable HIV tests that would work despite power outages and dusty laboratory environments.

Today, Cavidi develops and sells three different HIV tests under the brand name ExaVir. One is used for research purposes and the other two for measuring viral levels in the blood of HIV-infected individuals – an essential tool for ensuring HIV medication and dosage is effective. Until 2006, the Investor, the Industrial Development Fund and SAAB were the main owners of Cavidi.

The company was reconstructed and today is owned by Australian organization Narthex Life Science and private investors. In Sweden, six employees spearhead product development and marketing/sales. Production is outsourced to other companies in Sweden.

Suzanna Nilson Journalist for the newspaper Entreprenör Svenskt Näringsliv Tel. 0704-225711