Lotus Labs plans expansion

Lotus Labs, a Bangalore-based clinical services company is expanding its operations by adding bio-analytical lab. The company is also expanding its clinical facility in Chennai.

"Lotus' acquisition by Actavis has put it on the global map and the mix of clients will change to include more companies from US and Europe," Sudhir Pai, managing director, Lotus Labs told Business Standard.

Lotus Labs was recently acquired by the Iceland based Actavis a $600 million generic pharmaceutical group with a strong focus on research and development, manufacture and sales of products to international market. Dr Fjalar Kristjansson has joined the company as technical director.

The company has been accorded a tax holiday on all its research related activities for the next ten years under section 80-IB(8A) of the IT Act.

The approval was accorded by the Department of Scientific & Industrial Research of the Government of India's Ministry of Science & Technology.

According to Pai, the tax holiday status is a result of its foray into Phase III clinical trials. Lotus started Phase III activities in December 2003 and has co-ordinated several Phase III trials for both local and international companies till date.

The approval will result in enormous savings to the company which can be reinvested in expanding its operations.

With 500 bio-studies completed in the last four years of its existence which includes submission studies to USA and EU.

Lotus Labs registered a 120 per cent growth in top line and 285 per cent growth in net profits for year ending March 31, 2005.

The income for FY '05 was Rs 27.53 crore against Rs 12.54 crore in the previous year.