Disease Detection Forms Subsidiary to Distribute New Test for Pregnancy

Disease Detection International Inc., a medical test kit manufacturer and distributor, said Monday that it has formed a subsidiary to distribute a new non-prescription pregnancy test.

The new firm, FHC Corp., will market the one-step pregnancy test, Pro-Step hCG, to over-the-counter pharmacies, said chief executive H. Thad Morris.

The product, which will be distributed under a new, as-yet-to-be-decided name, should be on the market by early next year, company officials announced.

Morris said Disease Detection invested $300,000 in the formation of FHC and has a 50% stake in the new company.

Palos Verdes-based PMR Marketing, a marketing consulting firm specializing in health care, owns the other 50% of FHC, Morris said.

Morris said the company later plans to market other gynecological test products over the counter, such as tests for ovulation and yeast infections. Disease Detection International, which suffered a $1-million loss in 1991 on $1 million in annual revenue, will continue to market its test kits to hospitals and medical centers. The annual loss included a charge-off because of settlement of a lawsuit.

The pregnancy test market alone is expected to grow to $248 million a year by 1998, from $147 million this year, Morris said.

“We think there’s a lot of growth in this area,” Morris said.