Formulating profits
By Orchids Chemicals & Pharmaceuticals entered th | 10 Feb 2000
Orchids Chemicals & Pharmaceuticals entered the formulations segment last year with five products (three sterile and two pain management products). Over the past few months, the company has been increasing its product portfolio, taking its formulation products to 20. Plans are afoot to add 10 more in six months time.
"Unlike other players who went ahead with creating big capacities and find themselves in trouble now, we decided to diversify and earn handsomely," says K. Raghavendra Rao, managing director of Orchids.
Orchids recently signed an MOU with Ajanta Pharma to buy the latters 50 tpa bulk drug plant at Aurangabad. While the price is put at Rs 21 crore, due diligence is being carried out by KPMG. After slight modifications, the plant will start manufacturing non-cephalosporin drugs from April onwards.
According to Rao, the formulations division will contribute Rs 40 crore to the company's turnover. The main focus will on pain management, geriatric (osteoporosis), life style diseases (anti- hypertension, anti-diabetic, lipids, liver protection and cardio-vascular drugs) and nutraceuticals amongst the 40-odd therapeutic segments.
In addition, the company has tied up with JSS College of Pharmacy,Coimbatore, to formulate herbal diabetic drug. "The drug will be put to strict cllinical trials so that it will be patentable." says Rao.