Strides eyeing share in $25 b global aid projects

Strides Arcolab, the Bangalore-based exporter of branded generic pharmaceutical products, is eyeing a portion of the $25 billion aid projects market. It has joined the institutionally-funded global aid projects to achieve this.

Global aid projects, spread over five years, plans to spend $25 billion under the aegis of PEPFAR, the WHO, the UN and UNICEF. These bodies have outlined a strategy for the prevention, treatment and management of three killer diseases "" TB, HIV/AIDS and malaria.

Presently, the company is one of the largest Indian suppliers for institutionally-funded aid projects and has been the approved supplier of drugs to the World Bank, the African Development Bank and UNICEF.

The company, which has 11 plants spread across the United States, Brazil, Mexico and India, has become the natural choice as supplier of drugs. "This broad manufacturing network facilitates partnering global organisations ranging from UNICEF and WHO-Global Drug Facility to European and American pharmaceutical global firms and has helped us grow our market share," said a senior company official.

"The company, in line with this, hopes to launched a major product development and marketing initiative. Our oral dosage forms facility at Jigani, near Bangalore, is one of only seven sites worldwide to be pre-qualified for the manufacture of anti-TB products by WHO-Global Drug Facility. On the HIV front, bio equivalence studies have been completed on seven key anti retroviral drugs. Development work has also been initiated on other anti malarial combinations," he added.

In addition to supplying drugs to aid projects, the company also has major presence in various developing countries such as Africa, Latin America and Asia as well as in developed markets such as the US, Canada and part of Europe.

"In addition, the company undertakes contract research and the manufacturing of speciality chemicals for various multinational companies," the official said.

Strides manufactures pharmaceuticals formulations in various dosage forms, including capsules, tablets, liquid injectables and is one of the world's top five manufacturers of softgel capsules and has the only globally dedicated soft gel facility for hormones.

The company's product registrations in over 37 countries around the world and employs approximately 1,300 people across the globe. Strides also has a marketing presence in over 50 countries.

The company for third quarter (Q3) of the financial year (FY) 2005 ending September 30, 2005 reported net sales of the company grew by 28.26 per cent at Rs 88.72 crore for Q3 of FY 2005 as against Rs 69.17 crore reported in the corresponding period of Q3 FY 2004.

According to company's managing director Arun Kumar, "Growth in income both from supplies and R&D from the regulated markets continues to be the key revenue and profit driver for the company. and is backed by significant growth in Latin America and strengthening of the currency and a better product mix has contributed to increase profits."