Tonira Pharma to supply APIs to US-based companies

Vadodara-based Tonira Pharma (TPL), manufacturers and exporter of bulk drugs, has signed a contract to supply four different Active Pharmaceutical Ingredients (API) drugs to the world's top two generic company.

According to sources, TPL has tied-up with US-based Apotex Corporation and Teva Pharmaceutical to supply four API drugs for a period of five years.

When contacted, Mahesh Shah, CEO and managing director of TPL, confirmed the report. He said, "If both the contracts are clubbed then the total amount of the contract is worth Rs 22 crore."

The company will be exporting API of anti ulcer, anti-inflammatory, anti"�histamine and anti-allergic drugs to both of these companies. TPL has already applied for Drug Master Files for all the four drugs with the US Food and Drugs Administration (USFDA).

Previous year, the company had set up its second manufacturing unit at Nandesari GIDC, Vadodara to cater the USA market. The second unit has been designed in order to comply with the USFDA specification. It will be a first entry for the company in the US market after setting up USFDA specification manufacturing unit.

In the first phase, TPL has invested Rs 15 crore to set up the second unit with an annual capacity of 80 metric tonne of product mix.

"The USFDA authority will be inspecting our plant in Oct-Nov 06 and we are sure to get the clearance as we had already got endorsement from independent auditors send by both the companies." He further said, "We will start exporting to US by January 07."

In the second phase, the capacity of its second unit will be further expanded raising it to 160 metric tonne per annum of product mix. "We will invest another Rs 5 to 6 crore in the second phase", Shah said.

Currently 60 percent is exported from Nandesari unit, while the remaining is sold domestically.

The company has also invested Rs 3 crore for it additional API drugs at its Ankleshwar unit which will further add 6 metric tonne per annum of product mix to the current capacity of 200 metric tonne. The company will supply API of anti-diabetic drugs and arthritis drug to Japan and European market.

Tonira had a total turnover of Rs 30 crore and had registered net profit of Rs 3.5 crore for the financial year 05-06. It export 95 percent of its product to more than 80 countries world wide.