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Mumbai-based Ipca Laboratories plans to start making active pharmaceutical ingredients (APIs) for male hormones in a few months time from its Nandesari facility near Vadodara in Gujarat. The company has already started making API for one female hormone product from last month and has a long term plan to commercially launch 15 female hormone APIs.
As a strategic move, Ipca Laboratories has recently picked up 50 per cent stake in Vapi-based Avik Pharmaceutial Ltd for about Rs 6.5 crore. Harish P Kamath, corporate counsel and company secretary of Ipca Labs said, "We are already buying APIs from Avik Pharma and this investment would actually reduce the cycle time for us to launch our hormone products. Avik Pharma has the expertise to manufacture male and female hormone products."
He added that the company has already invested close to Rs 50 crore on the Nandesari facility in the last 15-17 months that would initially make APIs and would eventually start making hormone formulations. However, commercial manufacture of hormone formulations will take some time, and for the time being Ipca would concentrate on selling the hormone APIs in India as well as overseas markets.
"While our focus is on regulated markets, as of now, we can source APIs from Avik's Vapi facility and sell it in India as well the rest of world (ROW) markets which do not have very stringent regulatory requirements. Hormone formulations is an entirely new business for us, and it would take some time to develop," Kamath explained.
According to industry estimates, the size of the female health therapeutics market alone is likely to touch a sales value of $22.7 billion by 2018.
As for picking up the remaining stake in Avik Pharma, Kamath said that there was no such plan. "Avik is an unlisted privately held entity, and it is difficult to merge such an entity with a listed firm," he said.
It can be noted here, Ipca's Nandesari unit came under its fold as a part of the company's acquisition of another Gujarat-based company, Tonira Pharma, a listed entity. Ipca had picked up a stake in Tonira Pharma in 2008, and had eventually merged it with itself by 2011.
Ipca's total sales stood at Rs 2797 crore in 2012-13. Income from exports was Rs 1716 crore, while income from domestic operations was Rs 1081 crore.
