Indoco plans to tap US, Europe

Mumbai-based pharmaceutical company Indoco Remedies Ltd (IRL) plans to tap the regulated markets of Europe and the US.

It is currently in discussions with several companies in the European Union and the US for marketing alliances. "Talks are in advanced stages," said Suresh G Kare, chairman and managing director.

The Rs 260 crore plus company, a late entrant into the US market, hopes to leverage its strength in ophthalmology to tap that market. The generic opportunity available in the US for ophthalmic preparations is valued at $7 billion and generic price erosion is comparatively limited.

The competition is minimal as there are limited players in this category due to the difficulty in manufacturing sterile ophthalmic preparations and entry barriers.

A start-up ophthalmic solution manufacturing facility may require about three years to start supplies to the US and in this context, now only two Indian companies can offer competition to IRL.

It has already filed three abbreviated new drug applications (ANDA) for the US market for Ciprofloxacin, an anti-biotic and an anti-inflammatory drug.

The first consignment of Ciprofloxacin was shipped on Tuesday. Levofloxacin supplies are expected to begin from next year and a supply agreement has been filed with Nexus Ophthalmic. Currently, the company is developing about eight solid orals, six ophthalmic preparations and five creams, with plans of active pharmaceutical ingredient (API) supply to regulated markets.

Of this, four molecules are going off-patent in near future and IRL hopes to become one of the early entrants into the field. The company has invested over Rs 25 crore on research and development and employs about 180 scientists. An integrated R&D Centre will soon take off at Rabale in Navi Mumbai, said Kare.

Aditi Kare Panandikar, director (business development and HR), said the company is also strenghtening its European foray. It has signed a contract with Axicorp of Germany for supply agreement of 18 formulations.

The company is also discussing with five to six companies in Europe for supply agreements. IRL plans to file about six own dossiers in the EU countries in near future.

The company already has good presence in Russia, South East Asia and African region. Exports to the Latin American market will soon expand as one of the plants is expected to get regulatory approval from Brazil.

Talking about the infrastructure in place, she said IRL has invested over Rs 100 crore for creating state of art manufacturing facilities. Its Rs 35 crore plant at Baddi for manufacturing tablets, ointments, medicated toothpaste etc is being expanded with another Rs 10 crore to manufacture liquid orals.

The liquid oral facility will start production from next month. IRL acquired La Nova Chem (India) Ltd and its API plant has US FDA approval.

Kare said considering the current level of growth and the aggressive marketing strategies and production capabilities in place, plans are to reach an annual sales turnover target of Rs 1000 crore by 2011.

Of this, 50 per cent will come from exports, of which, half of the revenue expected from the regulated markets. The domestic formulation business is also expected to grow with fous on lifestyle products, antibiotics and other niche therapeutic areas.