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Anju Ghangurde
Mumbai, Apr 2: JK Drugs & Pharmaceuticals, part of the $1.3-billion (approximately Rs 5,500 crore) HS Singhania group, is evaluating the feasibility of developing its formulations marketing and research and development (R&D) segments as separate profit centres. These initiatives form part of the company's attempts to realign its bulk drugs to formulations sales ratio to 30:70.
In a faxed response to The Financial Express, JK Drugs & Pharma president VK Batra said: "Initially, the company focused more on bulk drugs. However, realising that the bulk drugs business is fiercely competitive with rapidly falling margins, we have consciously decided to move into the value-added segment of formulations." The company is also looking at "acquisition of brands/companies" even as it is in the process of beefing up the formulations management team to meet the future requirements of this business.
Batra outlined the key measures identified to propel growth, including:
On the company's plans to take on the challenges of the product patents era, Batra said, "We are negotiating with a few mid-sized European companies for licensing out of products launched in other parts of the world and products which are under phase three clinical trials. We areconfident of tie-ups towards the end of 1999."
JK Drugs & Pharma has also revamped its bulks strategy by zeroing in on intermediates as a thrust area, even while widening the company's product basket. "Our core strength lies in cephalosporins, and we have broad-based our initial product mix of cephalexin, cefadroxil, and cephradine by introducing high-value, new-generation cephalosporins like cefixime, cefotaxime sterile, ceftriaxone sterile and cephradine arginine sterile. The latest generation macrolides like clarithromycin and azithromycin have also been introduced," he said.
Other indigenously-developed products in the pipeline for the current year include cefuroxime axetil, ceftazidime sterile, and cephradine carbonate sterile. The company has also drawn out a strategy to enter the area of new-generation non-antibiotics and drug intermediates by the beginning of 2000, and developmental work on this front is under progress.
Batra added that the business potential for intermediates was very good,especially for the developed markets, as most international companies were outsourcing the key intermediates for various bulk drugs. "To mark our presence in the developed/regulated markets, we intend working through long-term supply arrangements with international companies. As a first step in this direction, we have joined hands with a leading bulk-drug company for supply of intermediates/bulks."
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
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