Strides Arcolab sets up R&D facility for global clients

Strides Arcolab, a specialty pharmaceutical company based in Bangalore with presence in generics, OTC and nutraceuticals, has dedicated a research facility for its global clients.

Christened STAR -- Strides Technology and Research Centre "" the company plans to house research facilities of its foreign partners, pursuing research on non-infringing process and new drug delivery systems under one roof.

Briefing reporters, Strides Arcolab Group CEO Arun Kumar said, the company's continued focus on regulated markets has yielded rich dividends.

"Our strategy of growth through partnerships in specialty products has received further impetus through new agreements with Mayne group of Australia, Akorn and Stada achieved during the year. With the tie-ups, we are confident of growing the business further in the coming years," he added.

STAR is spread over 50,000 square feet and Rs 18 crore was invested in it. It will spearhead the research activities for company's global partners. The centre will also focus on research in global diseases like HIV, tuberculosis and Malaria.

Following the success of STAR-1 dedicated exclusively to finished dosage forms, the company now plans to have STAR-2 for chemical synthesis space especially in APIs.

Announcing 15-month financials of the company, Arun Kumar said that on a consolidated basis, the company saw revenues of Rs 462.45 crore, the net profit surged to Rs 43.99 crore. The board had also recommended a dividend of 15 per cent i.e. Rs 1.5 per equity share of face value Rs 10 each.

During the last 15 months, the company has restructured its shareholding in Indian and Latin American subsidiaries. As a result, other income includes Rs 12.39 crore being the profit accruing consequent to such restructuring, he said.

The Indian operations reported a revenue of Rs 306.16 crore. Net Profit rose to Rs 29.15 crore. The operating margin has risen to 25.3 per cent from 18.4 per cent due to the continued focus on regulated markets and new revenue stream from Japan and Australia.