Orchid Chemicals inks co-marketing agreements and starts health portal

Cephalosporin bulk-drug major, the Rs.371-crore Chennai-based Orchid Chemicals and Pharmaceuticals is planning to ink a couple of co-marketing agreements soon in the formulations category.

Having entered the category two years ago, Orchid Chemicals' co-marketing plan is part of its multi-pronged approach to increase its formulation sales. The company hopes to clock Rs. 30 crore in revenue selling formulations.

"We find the formulations market cluttered with several players marketing me too products with an undifferentiated sales force. Moreover, the avenue for reverse engineering is fast closing," points out Dr. C. B. Rao, deputy-managing director.

According to him, Orchid Chemicals, with its revised business strategy, will concentrate on new cephalosporin bulk, formulations and new drug delivery systems. On the formulations side, Dr. Rao adds that the company will look at the export markets for value-added generics.

Reducing its dependence on the Chinese market for cephalosporin bulk, Orchid Chemicals is now targeting at East Europe, Russia, Brazil and African countries.

Meanwhile, Orchid Chemicals has become the first Indian pharma company to launch a health portal, which also doubles as the company's B2B site. According to Dr. Rao, the Rs. 1-crore portal will make it possible for one and all to get information on medical trends around the world in select therapy areas.

With the company being a significant player in the anti-infectives market, the portal would lay a special emphasis on infection management, which continues to be an important issue in healthcare practice.

The company recently allotted $ 20 million Foreign Currency Convertible Bonds (FCCB) to International Finance Corporation, Washington (IFC). These bonds will be converted into equity at a price of Rs. 220 per share within 18 months. Post conversion, IFC's share in Orchid Chemicals equity will be 13.5 per cent. IFC will also extend an ECB loan of $ 10 million to Orchid Chemicals.

IFC's investment is its first ever in the South Asian pharma sector. The money raised will part finance Orchid Chemicals $ 116-million expansion and diversification programme and support the company's initiatives to develop business in differentiated arenas.