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City-based pharmaceuticals player, Corona Remedies Pvt Ltd, has acquired two brands in the prescription drug category from Abbott India Ltd for managing diabetes and hyperthyroidism.
The company, which earned a turnover of Rs 415 crore for the fiscal 2017-18, said that the two brands from Abbott included Obimet and Thyrocab comprising 14 product line extensions in India. The two brands are expected to generate sales revenue of about Rs 25 crore in the first year of integration.
Both drugs are part of anti-diabetic and thyroid management segments that have a market worth Rs. 10,839 crore, with a growth of nearly 13 per cent year-on-year, according to the January 2018 MAT data of pharma research firm AWACS.
"This is our second acquisition in the last one year after we acquired four products from GSK in 2017 and it is in line with our inorganic growth strategy. We are also in active discussions with a few other companies for further brand acquisitions in the coming days," said Tejas Kothari, Head - Strategy at Corona.
Corona has also laid out an investment plan of Rs 60 crore towards setting up its second manufacturing facility at Bavla near Ahmedabad in Gujarat. The company plans to fund the expansion through internal accruals.
The company has acquired a land for the new plant, which will be PIC/S compliant to cater to the European market with a total manufacturing capacity of 200 crore tablets, 60 crore capsules and 3 crore liquids per annum. The new plant will create jobs for 300 people.
Corona has an existing WHO-GMP certified facility at Solan, Himachal Pradesh with a production capacity of 100 crore tablets, 6 crore capsules and 1 crore liquids per annum.
"The Bavla plant will help us focus significantly on international markets in addition to the domestic business. Currently, our exports are about 3-4 per cent of the revenues, which we expect to touch 10 per cent in coming years," Kothari said.
For Corona, cardio metabolic and neutraceuticals segments are the focus areas, while it has a significant presence in the gynecology, infertility and neuropathy segments.
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