Ind-Swift opens dedicated drug facility for Ranbaxy

Ranbaxy, as part of its product sourcing arrangement for atrovastatin intermediate with Delhi-based Ind-Swift, would have a dedicated facility at the latter's existing premises.

Sources from Ind-Swift said that it has already set up the plant at a cost of around Rs 20 crore in compliance with Ranbaxy's requirements at Derabassy near Chandigarh.

The plant has a capacity for atrovastatin intermediate worth Rs 150 crore per annum. The Ind-Swift sources said that the current product sourcing agreement is for three years and Ranbaxy is expected to fully utilise the capacity.

The sources also said that the investment for the dedicated facility will be fully compensated by Ranbaxy in three years.

However, N R Munjal, managing director, Ind-Swift, ruled out any financial collaboration between the companies at this point of time.

"The dedicated production facility is purely part of our product sourcing arrangement," he said.

Ranbaxy sources said, "the company is now getting ready to meet its global requirements as per its expansion plan for critical markets. Atrovastatin is the most important product in our portfolio for the global generics market. We have a product sourcing arrangement with Ind-Swift as well."

Ranbaxy sources added that "though we have plans for domestic acquisitions for the proposed growth in the global as well as local markets, deals have not been finalised yet on the domestic front."

Atrovastatin, a cardiovascular drug, is currently a crucial product for Ranbaxy as the company has a Para 4 filing in the US for the generic drug, which was challenged by Pfizer.

The company is anticipating a favourable decision on the same, which will give it a six month exclusivity in the $12 billion US market.