Intas Pharma ups spending on research, NDDS

PHARMACEUTICALS - I/ THE WTO IMPACT

Pharma major Intas Pharmaceuticals has prepared itself for the product patent regime that comes into effect from January 1, 2005. It has stepped up research in the development of formulations and new drug delivery systems (NDDS).

The company has tied-up with global life sciences majors for formulation research and dossier development for the formulations going off patent.

Recently, Intas forayed into biotechnology with an investment of about Rs 40 crore to set up a facility near Ahmedabad to manufacture the Bio-tech range of products. The company is also planning to expand its domestic operations by entering into new therapeutic segments.

Intas has also lined up an initial public offering (IPO) to meet its expansion expenses.

"We are closely monitoring the developments on the patents law front. The process of strategising our future actions in this regard is under progress. The company spends about five per cent of the turnover on research and development (R&D). It is already close to obtaining US FDA in the near future. Going forward, we will engage in new drug discovery for which the necessary strategy is being worked out," Jayesh Shah, vice president, finance, Intas Pharmaceuticals said.

The company's boitechnology facility has a production capacity of E-coli and cell culture-based products. The company has already launched its first biotech product under G-CSF under the Neukine brand. Two other products are in the pipeline.

"Intas is in the process of freezing its investment plans keeping in mind its expansion in developed markets. It shall then work out the most appropriate way to meet its financial needs, including going in for an IPO," said Shah.

The company is already active in the niche areas of cardiovascular, neuropsychiatry, gastrointestinal, animal healthcare, and oncology. Going forwards it plans to expand its therapeutic coverage by adding pain management; dermatology, gynecology amongst others.

Intas has separate manufacturing facilities for formulation preparation in respect of chemicals entities and bio tech products. It has two manufacturing units for pharmaceuticals formulations at Vatva and Matoda, Bavla.

The company also has a manufacturing facility for ophthalmology range of products at Vadodara. In the domestic market, the company enjoys about 1.4 per cent market share.

In the export market, the company has established its presence as a contract manufacturer of choice for major global life sciences companies. The export turnover represents 20 per cent of the total turnover of the company.

"For the international market, the companies follows the strategy of offering total solutions in terms of product development, contract manufacturing based on the requirements of the customers and offer them ready to market products," said Shah.

The total turnover of the company for the current financial year is expected to be Rs 500 crore.

The company is promoted by Hasmukh Chudgar who along with his family members holds 87.5 per cent of the total shares and ICICI Venture holds about 12.5 per cent of the equity.