SMS Pharmaceuticals Ltd is betting big on the oncology segment. Having developed and stabilised on high growth oncology products such as Gemicitabine, Capecitabine, Imatinib and Bicalutamide, the company has lined up about seven more products in the pipeline for the regulated markets such as the US and Europe. Fuelling its R&D, the company launched its new oncology manufacturing facility on about 10 acres, at Jawaharlal Nehru Pharma city near Vizag, with an investment of Rs 50 crore.
The company, in association with Julphar-Gulf Pharmaceutical Industries, claimed to be one of the reputed pharmaceutical companies in the Middle East and first pharmaceutical company in GCC, is looking forward to utilise this facility to focus on contract research and product scale up business. “This facility is expected to open up new avenues of business for SMS hereto untouched. It offers SMS great opportunities to venture into finished dosage forms business segment and would ultimately lead to business associations with the leaders in oncology drug segment, one of the fastest growing segments in drug industry,” Ramesh Babu Potluri, CMD, SMS said.
According to Sheikh Faisal Bin Saqr Al Qassimi, chairman, this is a win-win situation for both the company. It has invested close to Rs 30 crore in the company taking close to 9% stake. Besides, this would also help SMS Pharma enter into niche markets and to emerge as a true global player. The integrated business model including the formulations would give SMS Pharma a cutting edge in competitive markets and the geographical presence in the US and Europe would give additional advantages in niche markets.
Oncology drug segment had a tremendous upswing growth since last two years recording a growth of 19% in 2005-06 and a further 28% jump in 2006-07. It is one segment which is registering growth much above the normal industry standards. As per the IMS projections Oncology sector is poised to overtake the anti-cholesterol segment. In 2004, cholesterol segment registered sales of $27 billion while the oncology segment registered $24 billion. The projected sales for anti-cholesterols in 2009 are $38 billion while the same for oncology segment is estimated to be $55 billion.
Further, the company is scouting for acquisition of units in the US and Europe and in the domestic market for increasing the product manufacturing capacities and venturing into new therapeutic segments in formulations to integrate with the existing API manufacturing capabilities.