Concord Biotech mulling new unit

Concord Biotech Ltd (CBL), a major player in the biotech pharmaceutical segment is mulling a plant for manufacturing anti-biotics, steroids and immunosuppressants in the state.

CBL is an R&D-based biotechnology firm with state of the art fermentation facility in Ahmedabad had identified new products which it is actively considering to add to its existing set of biotech products.

Sudhir Vaid, managing director of CBL, told Business Standard, "We have identified anti-biotic and steroid products for which we are planning to set up a new manufacturing unit".

He further said that the company has two option for locating its new facility, it might set up the new plant either at it existing facility at Dholka near Ahmedabad or might choose to set up in a SEZ. Presently, the company has 28 acres of land at its current facility at Dholka, out of which the company has utilised 11 acres only.

As per the company, pharmaceutical markets of steroid and antibiotic products are attractive and has huge global market size.

Globally the market size of steroids is about $15-16 billion, while vancomycin, one of the antibiotic drug has a global market size of $200 million and the market of this product will grow further due to development of new analogues of Vancomycin.

As per the company, there are only few plants in the world that manufacture vancomycin.

While in immunosuppressant segment, most of the product patents will go off in the year 2008 and will boost the overall performance of the company. Presently, immunosuppressant are supplied to non-regulated markets and developmental quantities to regulated markets.

The company is one of the major supplier of penicillin G enzymes. The company claims to have 90 percent market share of this enzyme in the country.

The company is also planning to strengthen its presence in China, as is in the process of appointing an agent. It has received offer from a Chinese company, showing keen interest for getting the supplier agency.

Being a research oriented company, per annum investment of CBL in R&D segment is approximately 4-5 percent of its annual turnover. The turnover of the company for the financial year ended on 31 March 2007, stood at Rs 40 crore and the company expects to clock an turnover of Rs 90 crore for the current FY07-08.

Concord has fermentation and bio-catalytic technology capabilities and is one of the few biotech plants in the country to have been approved by the USFDA for an API (active biopharmaceutical ingredients) manufacturing facility.

Concord's product portfolio consists of statins, immunosuppressant, antibiotics and enzyme. The company has also filed drug master files for the above segment products with the USFDA.

According to Vaid, the company is focussing on high value and low volume business in the biotech segment. "We target those drugs, which are niche, needs high end technology, research and with very few players in the market," adds Vaid.

While talking on the investment aspect for its new upcoming plant, Ankur Vaid, manager - finance and projects, said, "The investment amount cannot be given before taking any prior approval from Matrix / Mylan."

In February 2006, Matrix Laboratories Ltd picked up majority stake in Concord Biotech Ltd. Presently, Matrix Laboratories holds 55 per cent stake in Concord, while Sudhir Vaid's family holds 29 percent, 5-6 percent is held by Glopec International Inc, Rakesh Jhunjhunwala hold's 6 percent and rest with employees.

Recently, US drug maker Mylan Laboratories Inc. has picked up a majority stake of 71.5 percent in Matrix Laboratories Ltd for $736 million.