Companies

Laurus Labs to focus on formulations; will invest ₹300 crore this fiscal

G NAGA SRIDHAR Hyderabad | Updated on January 08, 2018 Published on October 03, 2017

Identifies portfolio of products in cardiovascular and diabetes space



Drug-maker Laurus Labs Ltd will be stepping up its focus on formulations to derive a significant revenue from the segment.

As on Monday, the ₹1,892-crore (FY-17) company earns 92 per cent of its revenue from Active Pharmaceutical Ingredients (APIs).

“But in the next two years, we are expecting formulations to contribute a good portion of revenue in view of the investments into this segment,’’ Satyanarayana Chava, Founder & Chief Executive Officer, told BusinessLine here.

Last month, Laurus had received the Establishment Inspection Report (EIR) from the US Food and Drug Administration (US FDA) for its Finished Dosage Formulations (FDF) and API manufacturing plant, Unit 2, located at Achutapuram, Vishakhapatnam.

It had identified a portfolio of products in cardiovascular and diabetes for its formulation business, Chava said.

The company is also investing ₹300 crore in formulations and APIs facilities in Visakhapatnam, out of which ₹150 crore has already been spent.

The remaining will be spent before the end of the current financial year.

Hyderabad-based Laurus is one of the leading manufacturers of APIs for anti-retroviral (ARV) and Hepatitis C. It also makes APIs in oncology and other therapeutic areas.

Laurus is a major supplier of APIs for anti-retroviral and Hepatitis-C drugs for nine out of 10 world’s largest generic companies, Chava said, adding:

“We are selling ARVs in emerging markets at present but will also enter developed market this year.’’

Referring to innovation, the CEO said 80 per cent of revenue comes from products which are improvised in manufacturing. “We are a research-driven manufacturer with 5 per cent of revenue being spent on R&D,’’ he added.

R&D team comprising over 750 scientists (25 per cent of total employee strength) including 45 PhDs.

It filed 42 Drug Master Files (DMFs), four Abbreivated New Drug Applications (ANDAs) and commercialised 59 products so far.

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Published on October 03, 2017
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