Claris draws up big plans for Ondansetron

Claris Lifesciences has filed an abbreviated new drug application (ANDA) for injectable Ondansetron in the US.

The company aims at tapping a large market with the anti-emetic slated to go off patent in the US and the UK next year.

Sushil Handa, founder-CEO, Claris Lifesciences, said, "This is a significant development for the company's US and regulated markets business, considering that the global market for Ondansetron is valued at about $2 billion.

The current market for Ondansetron is about $600 million. The product will go off patent in the US by early 2007, creating ample space for the generic players."

The company aims at garnering 25 per cent of the $240 market of generic Ondansetron in the US in a span of two years, sad Handa.

Ondansetron is an anti-emetic most widely used in the treatment of nausea or vomitting, which is the common side-effect in case of chemotherapy, post-surgery and in similar medical situations.

"The market for bags, whose size we are still determining, will fetch a premium of 25 to 50 per cent," he further said. The company has filed a total tally of eight ANDAs so far and aims at having about 20 products in the US market by 2007- end. Bags being the latest in delivery system, the company will have upgraded its capacity to 10 million bags a year by next year.

Claris is eyeing presence in 30 countries of Latin America, European and Asia by 2008, said Handa. The company's sales turnover for 2005-06 was about Rs 420 crore, which it aims at taking to over Rs 800 crore by 2008.

"Ondansetron will contribute to 10 per cent of our overall turnover," added Handa.

The company is also in advanced stages of disucssion with leading US generic companies for outlicensing the product. Handa has also been the founder of the well-known Core Healthcare, a Rs 1,200 crore company, in the early 90s.

Asked if Claris is planning to go for listing on the stock exchange, Handa said, "We certainly would, but it would be over a period of 3 years. First we wish to establish Claris as a Rs 1,000 crore company by then, generating 20 per cent of the net margins. Also, we want to build our business through internal generation with no private equity," Handa said.

With about 60 per cent of the company's sales turnover coming from overseas markets, Handa said he is also not ruling out the option of international listing.

Nirma, which is all set to take over the sick Core Healthcare and make its foray into pharma, is likely to give some competition to Claris in the injectables segment.