NovaChem's API unit bought by Indoco

Indoco Remedies, the Suresh Kare-promoted pharmaceutical formulations and API company, has acquired La NovaChem's active pharma ingredient (API) unit located at Patalganga in Maharashtra for an undisclosed sum.

The acquisition has been effected by acquiring shares of La NovaChem (India), thereby making the company a 100 per cent subsidiary of the Rs 215 crore Indoco.

The NovaChem facility is built on US drug regulatory standards, and following the acquisition by Indoco, the new management will apply for US FDA approval shortly.

Suresh Kare, chairman and managing director of Indoco Remedies, said the acquisition of La NovaChem facility is part of its strategic move to build its in-house API manufacturing capability for domestic and exports business.

"The La NovaChem's US FDA approvable API facility and the recent commissioning of our API-focused R&D facility, would fortify and substantially hasten Indoco's strategy of backward integration and the reach of regulated markets such as the US and Europe. It will also help Indoco build its strong presence in API markets both in India and abroad," he said.

Recently, Indoco commissioned its newly set-up R&D centre at Rabale near Thane, which primarily targets API synthesis and development, and is also equipped with a kilo-lab pilot plant.

"Indoco is increasingly looking to expand its business from other geographies, specially the regulated markets of the US and Europe. Our Goa plant for sterile ophthalmic preparations is also a US FDA-approved plant, which will facilitate production and export of the company's ophthalmic preparations to for the US market," he added.

Early this year, Indoco had signed agreements with two generic companies in the US and will supply products from the Goa facility. The company is looking at filing a total of 7 abbreviated new drug applications (ANDAs) by December 2006. The total market size for the new ANDAs is estimated to be $1.1 billion.

Established in 1947, Indoco Remedies is a fast growing pharma company in the country's small and medium enterprises segment.

The company is engaged in R&D, manufacturing, marketing and distribution of pharmaceutical products and services in the domestic and international markets, especailly in anti-infectives, anti-spasmodics, anti-cold, oral hygiene, ophthalmic and lifestyle product segments. The company is a leading player in dental and opthalmology segments.

Currently, the company has five formulations manufacturing facilities located at Mumbai, Tarapore Goa and Baddi. The company has an R&D unit for API at Rabale near Thane and a greenfield unit for API production at Ambernath.