The Hindu Business Line : Indoco Remedies plans US foray with ophthalmic drugs

The company is also in the process of acquiring five generic product licences through its overseas subsidiary Indoco UK Ltd. Mr Sundeep Bumbolkar, Director (finance and operation) of Indoco Remedies told Business Line that the off patent licences are expected to be acquired in the next four months and the on-going negotiations are for licences in the area of cardiovascular and anti-diabetic generics.

But he declined to comment "at this stage" regarding the US market entry.

According to industry sources, the United States Food and Drug Administration (USFDA) approval for its opthalmics plant is imminent following inspection. The abbreviated new drug application for ophthalmic solutions was filed with the US authority last year.

The company also aims to enter the new generics markets in Germany, Moldova and Turkmenistan. Indo Remdies currently exports generics to 35 countries including the UK, East European countries, Latin America, Africa and South East Asia. In future, Indoco UK would take care of marketing Indoco Remedies products in UK and East European nations.

Exports and contract research currently accounts for about 45 per cent of the turnover of Indo Remedies.

In its bid to further boost its exports, the company is also in the process of acquiring approval from Medicine Control Council of South Africa for its two plants in Goa. One plant is dedicated towards ophthalmic solutions and the other one is for ointment and tablets.

It has already created a marketing joint venture in South Africa Indoco SA Pty Ltd with Sun Medicamentos, a local firm. The joint venture will have marketing rights for South Africa and the Sub-Saharan African countries.

Mr Bumbolkar said that during the current financial year to June 30, 2006, the sales growth could be around 26 per cent against 21 per cent in the previous fiscal and the operating margins was expected to rise to 22 per cent, up by one percentage point. During the next financial year, expanded manufacturing capacity with the commissioning of Baddi unit in Himachal Pradesh and the bulk drug unit at Ambernath in Maharashtra is slated push sales growth significantly.

The upcoming active pharmaceutical ingredients research centre at Andheri, Maharashtra and the formulations manufacturing unit at Verna in Goa for the regulated markets are directed to provide additional edge to the company in the near future.