Himalaya Drug Company, the maker of blockbuster liver care drug, Liv 52, plans to set up manufacturing plants in Indonesia and Russia to expand its global operations.
NO IPO float
The Himalaya Drug Pharmaceutical Division Chief Executive Officer, Mr Philipe Haydon, told Business Line that the company has also decided not to float an IPO as it does not want to be “answerable to quarterly pressures.”
He has also ruled out any fund raising plans for the company in the short term.
Mr Haydon, who took over as the CEO of the pharma division in 2001, said that Russia was the biggest pharma market outside India for the company.
He also said that the pharma division is also setting up new categories such as ENT, lifestyle diseases and baby care, which will expand the total number of categories to 13 from eight currently.
Rural initiative
The CEO said the company is betting on rural initiative to drive its next phase of growth.
Its 100-member team of medical representatives cover about 4,500 villages currently and the team will be expanded to about 500 in a phased manner.
Currently, about one-fifth of its total sales come out of rural initiative. The company has also invested in a hospital division which carries out projects to make medical doctors aware of its various initiatives and brands.
Himalaya is also working on drugs for women's health, GI, derma as well as oncology, Mr Haydon said.
He said Liv 52 HB, its latest drug for treating hepatitis infection, took nearly 15 years to develop and now is one of its fastest growing products in its portfolio.
The Rs 1,200-crore Himalaya Drug Company has 66 brands and 91 SKUs as part of its portfolio. Its blockbuster drug, Liv 52 launched 57 years ago is growing at an average of 27 per cent every year.
Mr Haydon, who began his career with the company as a medical representative, said Himalaya's Pharma Division has about one per cent share in the Rs 52,000-crore market while the top pharma company in the pecking order has a six per cent share.
According to the ORG figures, Himalaya's pharma division has a turnover of about Rs 400 crore.
Mr Haydon said the company has been increasing its R & D budget over the years in spite of recession in the industry.
“We spend a substantial amount of money on R & D and there has been no cutbacks so far,” he said.