Pulse Pharma on Rs 10cr expansion mode

To set up formulation R&D lab in Hyderabad

City-based Pulse Pharmaceuticals Private Limited is going in for a Rs 10-crore expansion programme.

The plan includes setting up a formulation research and development laboratory to work on drug delivery systems and a second manufacturing unit for manufacturing therapeutic nutrition drugs in Himachal Pradesh.

Speaking to Business Standard, K V Raambabu, managing director of Pulse Pharmaceuticals Private Limited, said, "We have already began work on some new technologies involving drug delivery systems. To enhance the research, we are setting up a dedicated laboratory."

The company initially would be taking on lease a site for the lab. "The initial investment for the leased space and equipment would be Rs 1 crore. We have also identified the place where our own facility would come up," he said.

Raambabu said that their own lab would come up near Uppal, on the outskirts of the city, and will be operational by October next year. The company is investing Rs 3 crore on this project.

Regarding the company's second plant in Himachal Pradesh, Raambabu said that the necessary government clearances have been obtained and construction work would begin next week.

"At the moment, we are looking at investing Rs 6 crore on the new plant. The commercial production at the plant would start from the second quarter of the next financial year," he said.

The company at present has its manufacturing unit at Jeedimetla with a production capacity of one crore units per month and the new facility would have a production capacity of 2.5 crore units per month.

Raambabu said that the company is looking at raising the required amount through a combination of debt and internal accruals. "Around 75 per cent out of the total amount would be the debt portion. We are in talks with UTI Bank and also Himachal Pradesh Finance Corporation for raising the resources," he said.

Pulse Pharmaceuticals recently launched two new drugs "� a cholesterol lowering agent called polycoronal and benfothiamine, a drug for neuropathy. "The cholesterol lowering agent drug is a prescribed medicine and would be marketed as 'Vascular'," he said.

The company is planning to launch a combination anti-diabetic drug and also a drug for sleep disorders next month.

Pulse Pharmaceuticals has also drawn up plans for the next financial year. "We are looking at consolidating our existing products during the first half and looking at introducing five products in the second half of the fiscal," Raambabu said.

As part of the plan, the company is looking at exporting its products. "We plan to export through marketing arrangements with local companies," he said. Initially the company plans to export its products to Vietnam, Sri Lanka, Cambodia and Malaysia.

The company expects the export turnover to touch Rs 3 crore during the first year. Raambabu said that the company is planning to file five patents for its drug delivery systems. "The concepts for the preliminary filings are ready and we would be filing for the patents soon," he said.

Pulse Pharmaceuticals' turnover for the first half of the financial year was Rs 9 crore and expects it to touch Rs 20 crore by the end of the fiscal.