The Hindu Business Line : For supply and marketing in Canada

Mr K. Raghavendra Rao (right), Managing Director, Orchid Chemicals & Pharmaceuticals Ltd, and Dr C.B. Rao, Deputy Managing Director, at a press conference in Mumbai on Tuesday. - Paul Noronha

Mumbai , June 1

ORCHID Chemicals & Pharmaceuticals Ltd announced on Tuesday that it has extended the agreement with Apotex Inc for an exclusive supply and marketing arrangement in the Canadian market.

Orchid had tied up with Apotex for the distribution of its generic antibiotic injectible formulation range in the US market.

This agreement covers eight injectible antibiotic formulations, three of which are to go off patent.

Orchid would launch eight products progressively through Apotex in the Canadian market.

"With the Canadian market also covered, Orchid hopes to emerge as a key player in the North American generic business," said Mr K. Raghavendra Rao, Managing Director, Orchid.

Orchid anticipates a quantum jump in sales and profits from 2005 onwards because of the tie-ups with Apotex and earlier with Par.

The company has already commenced its abbreviated new drug application (ANDA) filings with the USFDA.

The company's USFDA compliant formulation facility at Irungattukotai near Chennai, will manufacture and supply generic formulations to the US and Canadian markets.

Mr Rao said the company plans to go in for 15 ANDA filings during this fiscal.

Orchid is on the threshold of a major foray into the `attractive' US generics market, officials said.

This foray is being done in three phases - first by setting up USFDA compliant infrastructure; complete regulatory approvals and finally enter with blockbuster products.

Globally, the anti-infective market is poised to grow to $38 billion by 2006 at a CAGR of 3-5 per cent.

Cephalosporins and combinations represent the largest segment of the anti-infectives market.

Orchid, according to its company officials, has the widest range of key cephalosporins of different generations for regulated market entry.

The generics market space for cephalosporins and high-end betalactums is estimated at over $6.4 billion.

Of this, the US constitutes the single largest market at $3 billion.