Dishman eyes contract deals

Dishman Pharmaceuticals and Chemicals (DPCL) hopes to emerge as a major contract manufacturing company for multi-national corporations (MNCs).

"Contract manufacturing has huge potential for India and, with the patent regime, global pharma majors are eyeing India as the most suitable destination for contract manufacturing and marketing," J R Vyas, managing director, Dishman Pharma, said. The company already has received enquiries from 12 major MNCs for contract manufacturing deals.

Dishman Pharma plans to invest Rs 25 crore in its R&D facilities that are expected to become fully operational soon.

The company hopes to get US FDA approval by the end of this year.

The company, however, does not plan to collaborate with any global lifescience major. It already has a long-term contract for manufacturing 'eprosartan mesylate' "" an active pharmaceutical ingredient for the hypertension drug Teveten "" with Solvay, Netherlands. This contract is up to 2008 and can be renewed annually till 2013.

Asked if the company plans to foray into biotechnology, Vikram Oza, vice president, finance and accounts, said: "We do not plan to plan to foray into biotechnology in the next couple of years. We are not into formulations. We are into contract research and contract manufacturing."

Dishman's facilities are located at Naroda and Bavla, near Ahmedabad. The Bavla unit is a 100 per cent export oriented unit (EOU) spread over 200 acres. The company plans to invest Rs 50 crore by March next year to enhance production facilities. It does not planning any financial restructuring at present.

Over two-third of the company's sales go to the export market. Company has wholly owned subsidiaries in Europe and USA.