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Our Bureau

Bangalore , April 21

STRIDES Arcolab Ltd on Wednesday announced that it was starting a joint venture in Chicago with US pharma company Akorn Inc to enter its products in the vast US hospital market. The products are expected to hit that market by the first quarter of 2005.

The two companies have signed an MoU to set up a 50:50 joint venture company within three months, Mr Arun Kumar, MD and Group CEO of the Bangalore-based Strides, told a news conference after a board meeting here.

The move is part of the generics exporting company's foray into the regulated markets.

In the past three years, it has gradually moved its US operations up the value chain from mainly nutritional products to OTC and now to prescription generics, said Mr R. Ramachandran, Executive Director in charge of the US operations.

The NSE-listed Strides will develop an exclusive set of products for the US hospital and retail markets to be promoted through the new company. These include liquid injectables, powder fills, soft gelatine capsules and tablets.

The company will now file the pre-launch ANDAs (abbreviated new drug applications) in the US through the new entity later this year.

The products will be sourced from Strides' four manufacturing plants in the country, including a cephalosporin facility that is coming up in Bangalore this year in collaboration with Italian company Ribbon. It also has eight other plants worldwide, including one in the US.

For the second quarter ended March 31 this year, the company posted a consolidated net profit of Rs 8.3 crore, up 34 per cent, and sales of Rs 94 crore, higher by 13 per cent over the figures for the same quarter last fiscal.

Indian operations generated sales of Rs 59.6 crore or a growth of 95 per cent and net profit of Rs 4.29 crore. Last year, the company made loss of Rs 6.2 crore for the same period. Mr Arun Kumar said the weakening dollar had clipped profits by Rs 2.1 crore.

More Stories on : Alliances & Joint Ventures | Pharmaceuticals

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