OPC, KLM Cargo in deal to vend pharma products

The Netherlands-based OPG Group and KLM Cargo, the cargo division of KLM Royal Dutch Airlines, have entered into an alliance to tap the fledgling pharmaceutical trade between India and Europe.

OPG and KLM Cargo have formed a one-stop shop system, where they will pick up consignments of medicines from Indian pharmaceutical companies, fly them to Europe and distribute them through the OPG network.

OPG is the largest distributor of medicines in Europe and holds 50 per cent share in the distribution business. KLM Cargo is one of the largest cargo operators in the world.

In fact, OPG, formed in 1899, deals exclusively in distribution of medicines in Europe. This is the first time that OPG is looking at distributing Indian drugs in Europe.

Regilabs, a group company of the OPG Group, will provide laboratory services to the Indian pharmaceutical companies which wish to set up a base in Europe. Regilabs will help the Indian companies conduct tests their products to meet the European standards and also will provide cold storage facilities.

A joint team of the OPG Group, Regilabs and KLM Cargo was in Ahmedabad on Wednesday to meet pharmaceutical companies who want to export drugs to the US. Over the past few days, the officials have met big and medium sized pharma companies from Delhi and Mumbai and will also travel to Hyderabad and other places.

"We intend to establish contact with over 50 pharmaceutical companies of the country. We expect to rope in around 10-15 companies," said M B Martijn Kerstens, Managing Director, OPG. "We have spoken to several of them and many have also shown high interest in the proposal," he said.

Asked if companies had objected to the fact that one company would distribute products of rival companies in Europe, Kerstens said that that will not be a problem, as OPG has been distributing medicines of rival companies in Europe for decades now.

Sanjay Tiwari, director, pharma and fashion of KLM Cargo, said that the alliance will offer quality transportation, cost management solutions, information management and distribution.

"However, generating revenues through the process will be up to the customers," Tiwari said. He added that around ten big pharmaceutical companies from India are already working with KLM.

P J Stoffels, commercial director of Regilabs, said that with norms being different in India and Europe, Regilabs will also provide services such as registration services, validation among other.