Lupin Ltd, one of the fastest-growing generic drug companies globally, is planning to set up three new manufacturing facilities at an investment of Rs 200 crore.
These will come up in Indore before the end of 2010-11, said Nilesh Gupta, group president and executive director. It would take the total of their manufacturing units to 11.
The new facilities are part of its aggressive expansion plan to tap the US and Japanese markets, and other regions, with new niche products in dermatology, injectables, eye care and oral contraceptives. “We are developing 25 products each in dermatology and ophthalmic lines, and this necessitates setting up new manufacturing units,” said Gupta. The Rs 3,900-crore turnover Lupin has eight units in India. It has 101 products approved for sale in the US and 65 are pending approval.
On acquisition trail
Lupin had acquired half a dozen marketing front-ends (companies that only market drugs, not make any) in various regions abroad in the past two years. It is planning more of this in Latin America. It is also looking to acquire established brands in the US market, in segments like paediatric and primary care.
“Our strategy will be not to overpay and we will not go for big acquisitions. We are also looking at potential good brands,” said Gupta.
It had bought the US rights for cholesterol-lowering drug Antara from bankrupt US company Oscient Pharmaceuticals for close to $39 million (Rs 188 crore), in September last year. Earlier, Lupin had acquired global rights for an allergic drug branded as AllerNaze, from the US-based Collegium Pharmaceutical for Rs 240 crore.
FDA green signal
Lupin had recently got clearance from the US Food and Drug Administration for its Mandideep production unit, where the drug regulator had found discrepancies in manufacturing standards last year. Nilesh said clearance for Mandideep would help Lupin continue production and export of drugs to the US worth over $60 million annually from that unit, which makes about a dozen cephalosporin antibiotic products.
The company did not invest heavily but made significant changes in processes and schedule to meet the 15 negative observations made by the FDA, he said.