The 50:50 JV with Geravi Inc, a subsidiary of Medpharmex of USA, would be the vehicle to introduce these products in the regulatory market. The JV company is called Cephazone Pharma LLC, which is currently in the process of acquiring US FDA approval for its formulation unit. Aurobindo Pharma and Geravi Inc have contributed $4 million each by way of equity in the JV. The formulation unit will have a capacity to produce 240 vials per minute. The revenue from the JV would commence once the US FDA approval for the formulations facility in US is in place, Aurobindo Pharma director Srinivas Lanka said.
Sterile cephalosporins involve complex chemistry and are known to have entry barriers. Aurobindo Pharma would be able to derive realisation upto 10 times by supplying API to US, analysts said.
The company has also commissioned two blocks out of the eight blocks at its unit number four for producing APIs. The unit number four has been relocated on an area of 92 acres and the company has spend Rs 60 crore till date out of the total cost of Rs 92 crore, Mr Lanka said.
The remaining eight blocks would be commissioned by February 2003.