The growing competition coupled with the strained margins, the world pharma majors are pushed to relay on the outsourcing model in research services giving good scope for growth for the companies engaged in the custom synthesis activity.
"There is high risk involved in the discovery of new drugs though it may award high profits. There will be no generic products after 2004. Thus, contract synthesis is the ultimatum," Mr Murali K Divi, chairman and managing director of DLL said.
"We hope to be one of the most cost-competitive manufacturers of API for the formulators in the open market and supplier of choice to the formulators in the regulated markets," he said adding that the company has obtained several approvals from the regulatory authorities in the US and Europe to sell several products and increase the sales. The Hyderabad-based DLL is engaged in the areas of API segment, intermediates for generics, custom synthesis for MNCs and peptides manufacturing. Currently, the company is manufacturing about 60 products complying with IPR to face the competition in the post 2005.
The company has set up a large multi-purpose manufacturing facility on a 300-acre site located at Lingojiogudem, about 55 km from Hyderabad with an initial investment of Rs 110 crore. The facility is in full utilisation with the production of Naproxene and other APIs for export markets.