The Covid-19 pandemic has opened up new avenues for Kerala State Drugs and Pharmaceuticals Ltd (KSDPL) to manufacture active pharma ingredients (API), the raw materials used for various drug formulations.

Hitherto, pharma companies are depending on China for over 60 per cent imports of API. However, the Chinese supplies have become erratic coupled with environmental pollution issues, leading to the closing down of some units there, said MP Sukumaran Nair, former Chairman, Public Sector Restructuring and Internal Audit Board (RIAB-Kerala).

To encourage domestic manufacturing of APIs and reduce dependence on China, he said the Central Government has drawn up a strategy by creating a suitable ecosystem with a focus on fiscal and procedural support to pharma companies to kick-start production of intermediates. The Cabinet had approved a ₹10,000-crore incentive-based scheme to boost domestic manufacturing of APIs by setting up bulk drug parks partnering with States.

According to him, the pandemic has brought an opportunity for Kerala to produce drugs and hospital disposables and consumables.

Considering the scarcity of import of raw materials in the Covid scenario, the setting up of an API manufacturing unit in the country is the need of the hour, says S Syamala, Managing Director, KSDP.

“We should have an API concentrated manufacturing policy for life-saving drugs. India is currently depending on China, Korea, and Vietnam and the emerging situation has facilitated the need to procure raw materials domestically for drug manufacturing,” she said.

She pointed out that the country is facing serious troubles both in sourcing and arranging logistics for the raw materials in the backdrop of Covid-19. The non-availability of imported raw materials have resulted in the surge in API cost of azithromycin to around ₹17,000 per kg from ₹8,000/kg.

Asked how equipped is KSDP to start API production, Syamala said “it all depends on the availability of latest, cost-effective, least polluted and lesser time-consuming technology depending on the current developments in the world.”

Turnover target

The ₹72-crore company — producing quality drugs of various formulations in the form of capsules, tablets, injectables, etc — is aiming at a turnover of ₹150 crore in the next fiscal, especially as work on new generation drugs is in progress. The company is on track to achieving the status of a major pharmaceutical establishment in Kerala, she said.

KSDP’s facilities in Alappuzha include a dedicated plant for the production of beta-lactam products, and a beta-lactam dry powder injection manufacturing unit. Another new plant is also being set up for the manufacture of LVP/SVP injectables. All facilities have incorporated the latest technology and are cGMP compliant. The company also has an NABL-accredited laboratory that caters analytical service to government institutions.

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