The Hindu Business Line : Grandix to invest Rs 30 cr in HP formulations unit

THE Chennai-based Grandix Pharmaceuticals Ltd proposes to invest Rs 30 crore in a formulations unit in Himachal Pradesh, which is to be dedicated for contract manufacturing. The contract is expected from "an MNC", according to the Grandix Managing Director, Dr A. Ramamurthy.

He told Business Line recently that the plant would be operation-ready well ahead of December 2006, the deadline for availing itself of the fiscal concessions allowed under a special dispensation for the hill States of HP, Uttaranchal and Jammu & Kashmir.

The Rs 32-crore Grandix Pharma - manufacturer of tablets - is working on a bunch of initiatives, which Dr Ramamurthy expects will take the company's turnover across the Rs 100-crore mark by 2006-07.

First, the company has submitted documents (ANDA) for approval by the US FDA and two formulations (Metformin, an anti-diabetic, and Metoprolol, an anti-hypertensive). The bulk drugs for these are to be sourced from Pearl Organics and Sun Pharma, Dr Ramamurthy said.

Second, Grandix intends to extend its footprint across India. Over the next few months, the company would begin marketing operations in Madhya Pradesh, West Bengal, Gujarat, Chhattisgarh, Punjab and Haryana.

Third, the company wants to get into the `clinical trials' area too. Interestingly, Grandix paid-up equity of Rs 3 crore is held by 492 medical doctors. Among them, they have 200 nursing homes and 10,000 beds. The company intends to use this "strength" for taking up (Phase II and III) clinical trial assignments, where drugs out of research laboratories are tested on patients. "We have the patient load," he said.

Fourth, Grandix proposes to spend Rs 5 crore in setting up R&D facilities, to research into oral formulations. The set up will basically address questions related to making tablets work better, longer.

Finally, the company expects business from two areas it recently diversified into - diagnostics and surgical equipment. Under `diagnostics' business development, Grandix recently announced a tie-up for marketing in India an Italian company's `chromogenic substrates' - chemicals that measure the activity levels of enzymes in a human body. These chemicals are to be marketed to pharma research institutions.

The other diversification, into surgical equipment, is also expected to grow because Grandix recently introduced a product of German make - a skin stapler.

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