J B Chem plans biotech foray

Company to invest over Rs 40 crore in two years

Pharmaceutical major J B Chemicals and Pharmaceuticals Ltd (JBCPL) is planning to foray into biotechnology in its endeavor to emerge as a global pharmaceutical organisation.

The company plans to develop new drugs and commercialise products developed through bio-technology means for therapeutic use.

The company will be investing over Rs 40 crore in two years for its biotechnology division.

"The company has announced its intention to diversify into the field of bio-technology, which has recently been a fast growing sector worldwide. Our biotechnology division will be operational by the end of the current financial year. The company will also develop fermentation technologies to innovative and effective bio-molecules in oncology, cardiology, diabetology, chemotherapy and other therapeutic segments. Backed by an outstanding scientific knowledge pool, strong technological skills and worldclass facilities, the company is in a good position to create a bio-technology business that is globally competitive," said Kamlesh Udani, executive director, technical and production, JBCPL, on Wednesday.

The company continues to maintain its focus on developing its international presence mainly in the US and European markets. Currently its international business constitutes about 52 per cent of the total revenue of the company.

The company may use contract manufacturing for its biotechnology formulations. "Bio-technology will be a key component for our global strategy. The company has a strong presence in international markets with exports to over 50 countries worldwide including the US, EU and Latin America. It will use these markets to market its biopharmaceuticals offering huge opportunities to drive its future growth," said Jay Mehta, vice-president, research and development.

The company has posted a net profit of Rs 21.97 crore for the quarter ended September 30, 2004, as compared with Rs 19.15 crore for the quarter ended September 30 last year.

Total income of the company has increased from Rs 92.28 crore in the second quarter of 2003-2004 to Rs 107.49 crore in the quarter ended September 30, 2004.

The board of directors have recommended an interim dividend of Rs 5 per equity share on an equity share of Rs 10 each for the financial year 2004-05.