Chennai-based Orchid Chemicals and Pharmaceuticals Limited has decided to convert its business alliance (BA) with Ranbaxy Laboratories into an agreement next month, said K Raghavendra Rao, managing director, Orchid. The move will bring in a significant growth to Orchid, he added.
?We are trying to convert the business alliance into an agreement in a month?s time. The proposed agreement will finalise the structure, products, markets among host of things,? Rao said.
To a question, he said, it is expected to be products specific, mainly bulk and formulations of cephalosporin range of products, which will be marketed across the globe. ?Ranbaxy is like any other partner. Orchid is looking at a significant addition in its topline and bottomline,? Rao said. It may be recalled, Solrex Pharmaceuticals, a Ranbaxy investment arm, has acquired close to 14.7% in Orchid earlier last month in the open market.
Responding to queries, Rao said Orchid is looking at a 25% growth from the US generics sale to $125 million in the current fiscal. The company is targeting $20 million revenue from the European markets.The Canada market is expected to chip in a few million dollars during the fiscal, he added.
?With the launch of new products, and a slew of regulatory filings coupled with geographical expansion, the company hopes to post a healthy 25% growth in the current fiscal,? Rao said further.
According to him, Orchid is among a few companies to have netted over $100 million revenue from the US generics market in just three years. In the US market, the company?s cumulative ANDA filing count stood at 47 with 28 in cephalosphorin space. And in EU, the company?s cumulative MA (marketing authorisations) filing count increased to 19 (15 in cephalosporin category), he said.
?Orchid has been the only generic player in cefepime throughout last year, undermining the company?s unique capabilities in the sterile injectables segment,? he said. Meanwhile, the company has reported a 91% growth in net profit for the fiscal ended March 31, 2008 to Rs 184.54 crore as against Rs 96.63 crore. The sales grew 35.7% to Rs 1,238.92 crore.
During the year, the company has launched high value products like cefdinir and cefepime in the US and forayed into the generic non-antibiotic formulations segment with the launch of Terbinafine. It has filed nine ANDAs and six EU dossiers and got approval from the MCC of South Africa for cephalosporin and pencillin injectible formulations facilities in India.