Unichem eyeing analgesic brands
By Ananth Iyer | 22 Sep 1999
Unichem Laboratories Ltd is keen to acquire fast moving pharmaceutical brands, particularly analgesics and cough preparations. "We are looking at brands with a turnover range of Rs 5-10 crore, and we have allocated sufficient funds towards this", says B K Sharma, executive director, Unichem Laboratories.
The total market for cough preparations and non-narcotic analgesics is estimated at Rs 310 crore and Rs 298 crore respectively (IMS 1998 audit). The market for cough preparations is growing at 12 per cent a year, while the analgesics market is reported to be stagnant.
According to industry experts, the market for these two therapeutic classes is expected to expand once a separate legislation for over-the-counter drugs is in place. Many companies would press for an OTC status for drugs falling under these two classes. Parke Davis is keen to push its cough syrup brand Benadryl to the OTC category.
Unichem, like most other Indian companies, has adopted a multi-pronged strategy to attain critical mass. "We are in the process of expanding our domestic and international businesses," says P A Mody, chairman and managing director, Unichem Laboratories. The company plans to leverage its marketing and distribution strengths by focussing on niche segments like women's healthcare, besides strengthening its general product portfolio through brand acquisitions.
On the international front, Unichem intends to expand its bulk drug operations, which contribute 12 per cent to the total sales; strike joint ventures with European generics companies to supply bulk drugs; and increase its R&D budget from 2 per cent to 5 per cent of sales from 2000.
The company has recently commissioned a state-of-the-art bulk drug facility at Roha, "which can qualify for US FDA approvals", says Vinod Behl, chief-executive, bulk drugs, Unichem. On the R&D front, the company has set up a unit for process research in Mumbai incurring a cost of Rs 10 crore. "We are talking to a number of European companies for developing non-infringing processes for off-patent drugs," Mr Sharma says.
