Troubled pharma player Wockhardt today said it sees huge opportunity in off-patent medicines over the next few years.
"The US remains the world's largest pharmaceuticals market currently, valued at over $300 billion. Over the next few years, patents on several blockbusters will expire and sale of over $140 billion are expected to face generic competition in the major developed markets.
"The US carves out almost two-thirds of this value and provides huge opportunity for off-patent medicines," Wockhardt Chairman Habil Khorakiwala told shareholders at the company's annual general meeting (AGM) here.
He said investment in R&D and abbreviated new drug applications (ANDA) filing will give the company unique advantage in the US market. The leading Indian drug maker had invested Rs 150 crore in R&D in FY11.
Wockhardt's 40-50 products in the US and Europe are expected to be approved in the next 18 months and many more products are under development and awaiting filing in the coming years, Khorakiwala said.
The company had filed additional 150 global patent applications last year alone, he said.
The cash-strapped firm is seeking alliances with partners in overseas market for its new products. "When products are ready for launch, we will seek alliances in the country's where we have no presence."
The company's European operations retained market share and improved profitability despite a tough environment, the chairman said.
Commenting on the domestic market, Khorakiwala said, "We have introduced 43 products and also increased our coverage to customers significantly during the year, including semi-urban and rural markets. We are energising our domestic operations for achieving faster growth by covering newer therapeutic segments and a combination of specialists and extensive coverage of general physicians."
Khorakiwala further said the company has divested its nutrition business for Rs 1,280 crore last year, which will be used to reduce a significant part of debt. Following this, in the current fiscal, the company expects to bring substantially down its debt to equity ratio.
He did not comment on a winding-up petition filed against the company by its foreign currency convertible bond (FCCB) holders, saying the matter is sub-judice.
The sale of Wockhardt's nutrition business to French food giant Danone got stuck at the Bombay High Court last week after the secured and unsecured lenders failed to arrive at a conclusion on how the money from the deal will be distributed.
The court will hear the case again on September 21.
