Lupin chairman and managing director Desh Bandhu Gupta told shareholders at the annual general meeting on Friday that this acquisition was likely to be completed during the current year.

"To complement our range for non-cephalosporin based formulations, we need to acquire one more facility or company through which active pharmaceutical ingredients (APIs) of non-cephalosporins shall be manufactured into dosage form and marketed in the US. We will pursue an aggressive acquisition strategy where the market and money lies," he said.

Lupin had, earlier this month, forged a 50:50 alliance with the Puerto Rico-based Mova Pharmaceutical Corporation. The new joint venture company, Ceph International Inc, then went on to buy out EliLilly's manufacturing unit in Puerto Rico for an undisclosed sum. The unit, however, has an estimated replacement cost of over $100 million.

Lupin's proposed acquisition and a series of planned strategic initiatives (including an on-shore base in China and an acquisition in Europe) are expected to lap up funds in excess of $10 million. Lupin already exports drugs worth approximately Rs 70 crore to the Chinese market.

Lupin which earlier dropped plans for a $15 million external commercial borrowing, has opted for a rupee loan of Rs 90 crore to meet its capital expenditure needs.

The company has also identified a list of 25 products with high sales/profit potential, in line with its broader strategy to churn out at least one blockbuster drug each year for the western markets.

Lupin is also readying itself for the launch of injectible cephalosporin, cefotaxime, in the US next year, even as it has reached an out-of-court settlement with Eli Lilly for an alleged process infringement case there. Lupin isbelieved to have developed a non-infringing process for, cefotaxime, and is on course to seeking a patent for this in the United States. Gupta expects products like cefotaxime to contribute $2 million to the topline in the first full year, post launch.

Meanwhile, shareholders approved all resolutions, including an enabling resolution to introduce a stock option plan for Lupin's permanent employees/working directors as and when the Companies Act permits.

Sights mid-term answer to new molecule research

Lupin Labs has identified phyto-chemistry as its `mid-term answer' to new molecule research. The company has already filed for patents for its new anti-migraine prophylactic formulation in certain international markets.

The product has completed stability testing and follows Lupin's Aptivate (an appetite stimulant based on phytochemistry) launched in the second half of 1997-98. Lupin also claims to have the largest number of process patents (including pending claims), at 40, after thegovernment-owned Centre for Scientific and Industrial Research (CSIR).