The Hindu Business Line : Non-antibiotics pep up Orchid's formulation biz

EMERGING markets such as Russia and non-antibiotic drugs largely make up the profit of Orchid Chemicals' formulations business, even as it has invested significantly in infrastructure to export antibiotics to developed markets.

Emerging markets, such as Russia and Brazil, are critical to the formulations (drugs in final form such as tablets) business. The company's Deputy Managing Director, Dr C.B. Rao, says Orchid has established a physical presence in Russia, and is looking at an alliance in Brazil.

He added that the company is aiming at over 500 registrations covering 60 products in the next 2-3 years.

"Most formulations' profit come from exports and domestic specialty formulations," says Dr Rao. In India, the non-antibiotic portfolio acquired from Mano Pharmaceuticals gives the best returns.

Currently, Orchid's turnover comes largely from bulk drugs exports to markets with relatively weak patent rules. Formulations made up Rs 103 crore of the Rs 713 crore sales last year.

Formulations sales are expected to overtake bulk drugs in about four years. More than 40 per cent of the sales are expected from developed markets such as US and Europe. At that time, India and emerging markets formulations business are expected to contribute about 12-15 per cent of total sales.

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