Indoco Remedies, a Rs 450-crore pharma company, is strengthening its position in the contract research & manufacturing service (Crams) segment globally by signing four new deals in a number of countries, including the US and Europe. Of these, the out-licensing deal with a new US-based partner firm will be signed next month. The company will sell its range of ophthalmic drugs under the partnership. The company is also scouting for bigger brands in the domestic market.
The Indian contract manufacturing market was estimated at $869 million in 2007, with projection to grow at a CAGR of about 41.7% to cross the $2-billion mark by 2010. India has the advantage of having the highest number of USFDA approved plants (about 100) outside the US.
The Crams business brings more revenues for Indian pharmaceutical companies since MNCs have started increased outsourcing to cut costs following the global slowdown. Indian pharma firms claim to develop and manufacture drugs which are 40% less expensive compared to the US and European companies.
Aditi Kare Panandikar, director, business development, said: ?As we are exploring the ways of strengthening revenue from the US, Europe as well as emerging markets, we found out-licensing deals are the ideal ones. The ANDAs will be approved within 15-18 months and we expect to earn revenues two years down the line.?
However, she refused to name products and markets where Indoco is entering.
Under the deals, Indoco will supply active pharmaceutical ingredient (API) and technology for manufacturing formulation drugs, while the drug will be branded and marketed by its partner. Apart from the US and Europe, Indoco targets emerging markets through out-licensing deals.
The company is in the process of submitting abbreviated new drug applications (ANDAs) with the USFDA for the products proposed for marketing. Indoco will file ANDAs for a few products, while its partner will file for others. It has got approval forfour ANDAs and has filed for one more with the FDA. It plans to file 5-6 more ANDAs in the recent future.
As part of expanding its presence globally, the company is investing Rs 40 crore in its Goa plant to increase capacit. The unit is expected to be commissioned by November 2010.