Orchid Chemicals and Pharmaceuticals Ltd, the Chennai-based bulk drug manufacturer, today announced that it would set up an overseas joint venture with Istituto Biochimico Pavese Pharma S.p.A., Italy.
The joint venture will essentially focus on development of novel peptide drugs, biotechnology products, innovative antioxidants and novel drug delivery systems that has attractive commercialisation plans, a press release stated.
K Raghavendra Rao, managing director of Orchid, said the company was adopting a two-pronged strategy to strengthen its current market presence as well as seeking new profitable avenues in regulated markets.
As part of the strategy, he said the company had initiated discussions to explore the possibility of establishing a manufacturing and marketing joint venture in China, the largest market for anti-infective. The proposed joint venture in China would also tap the potential of the Chinese formulations market, he added.
On the research front, the company is building a new research & development centre and an animal house cum toxicology centre.
To tap the potential in regulated markets, the company is building a new US Foods and Drugs Administration compliant bulk active and formulations plant in Tamil Nadu. Orchid is also making selective investments in the field of biotech products, a press release stated.
Meanwhile, the company has reported a net profit of Rs 2.65 crore on a turnover of Rs 94.11 crore during the three months ended September 2001 as against a net profit of Rs 4.41 crore on a turnover of Rs 93.01 crore. Net profit has declined by more than 39 per cent despite marginal increase in turnover.
For the first half, the company has reported a net profit of Rs 8.17 crore as against a net profit of Rs 10.65 crore in the corresponding period of last fiscal. Turnover during the same period increased marginally to Rs 183 crore compared with Rs 180 crore in the corresponding period of last financial year.
