The Hindu Business Line : Glochem into formulations, looking for PE funds

Hyderabad, April 11 Glochem Industries Ltd has firmed up plans to establish a formulations division with investments of up to Rs 25 crore. It is all set to launch a new salt of Clopidogrel, a blood dilutant, in Europe during 2008.

Next to Lipitor, Clopidogrel in the biggest blockbuster drug from Sanofi. It would go off patent in 2010. Glochem, has already filed the Drug Master Files (DMFs) for the new salt of Clopidogrel it has developed with several European medical authorities.

The Hyderabad-based Glochem, manufacturer of amlodipine besalate, has acquired 5 acres of land in the upcoming pharma SEZ (special economic zone) in Jadcherla, Mahboobnagar district, to set up its formulations unit.

The dosage forms facility, with a capacity to manufacture about one billion tablets plus capsules a year, would be established in the SEZ being promoted by the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) , said Mr K. Subba Rao, Managing Director.

The company is in talks with private equity players to raise necessary funds. “Since, we are a zero debt company, options to raise debt are also before us,” Mr Rao told Business Line.

The small-sized, active pharmaceutical ingredients (APIs) manufacturer, which logged Rs 39-crore turnover (Rs 27 crore from exports) during 2007-08, up from Rs 25 crore the previous year, intends to focus on meeting the outsourcing requirement of the dosage forms manufacturing of the company’s customers for the APIs.

Several of its customers for APIs, like Cimex Pharma of Switzerland or Gal Pharma and Chemical Solutions of the UK, have been outsourcing dosage forms from other contract manufacturers in India using APIs sourced from Glochem. They can be potential customers for the formulations division, explained Mr Rao.

Glochem divested 20 per cent of its equity to Cimex Pharma, the Schweizerhall Group company, for a consideration of Rs 9 crore in 2005. The money has been utilised to part-fund the Rs 15 crore, 21,000 sq m, 100 per cent export-oriented API facility at Pharma City, Visakhapatnam, which went on stream last year, he said.

Glochem is working on the development of several other APIs in its R&D facilities at Bollaram, Hyderabad and Visakhapatnam. These include Candesartan, Telmesartan, Eprosartan, Manidipine, Bernidipine, Nebivolol etc. The patents for some of these products have already expired and for some others would expire from 2010 onwards.

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