Research rewards

Ind-Swift Laboratories (ISL) notched up a growth of 22.6 per cent in sales to Rs 23.3 crore in the first quarter to June 2001. A major fillip to sales came from the new multipurpose manufacturing facility built at a total cost of Rs 6 crore as per USFDA standards that commenced commercial production.

Raw material consumption was up 30 per cent to Rs 21 crore. A 13-per cent decline in other expenses to Rs 2.17 crore nullified the adverse fallout of an increase in raw consumption. Operating profit declined 2 per cent to Rs 2.7 crore and margin to 11.5 per cent (14.5 per cent).

Ind-Swift is a research-based pharmaceutical company with a strong presence in gynecology, pediatric and dentistry segments.
Innovative manufacturing process is a key driver in the growth of the company. ISL created a new division to introduce super specialty drugs in cardiology, diabetology and dermatology.

The company is set to launch the lowest-priced Candez (candesartan) and Glitter (pioglitazone) tablets in the cardiology and diabetology segments respectively. This is the second company after Ranbaxy to have floated these products.

The company claims these tablets will be about 60 per cent cheaper than other similar brands. It thinks, low-priced products have been a result of its R&D efforts.

Candesartan is a new generation drug, with the total market of Rs 1,200 crore in the segment. The segment has been growing at 32 per cent a year. Ind-swift hopes to capture 35 per cent of the market in the first year. The drug, pioglitazone, in the anti-diabetic segment, is also growing at 33 per cent. The total market segment is valued at around Rs 487 crore.

The company’s main thrust area will be development of new molecules in altered delivery dosage form. During 2000-2001, the company launched 25 products in the high growth therapeutic segment of diabetology, neurology, cardiology and anti-viral to be marketed by its four divisions. New drugs, low pricing and R&D support may ensure the company good prospects.

-- Dhruv Rathi