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By Our Special Correspondent
HYDERABAD, SEPT. 16. The Chennai-based Orchid Chemicals & Pharmaceuticals has commissioned the first phase of its joint venture `sterile crystalline' facility in China, being set up in collaboration with NCPC Orchid Pharmaceuticals. The second phase comprising the sterile lyophilisation block will be commissioned by October-end. Announcing this at a press conference here on Tuesday, K. Raghavendra Rao, Managing Director, said the China JV involved an investment of $25 million, constituting $10 million equity (of which Orchid's investment is $5 million equity). The JV will produce and market in China, sterile cephalosporin bulk actives and formulations. Given its growth plans, Mr. Raghavendra Rao was upbeat on the company's performance, and expected a 40 per cent growth in turnover this year (targeted at Rs. 750 crores). Formulations are expected to go up from 16 per cent to 20 per cent of turnover next year, and 10 per cent increase every year thereafter. The company expects to file 12 DMFs (Drug Master Files) and ANDAs this year (so far 4 DMFs filed). It has filed 163 patent applications cumulatively. In the U.S., it has a JV with Bexel Pharmaceuticals for drug discovery in metabolic diseases. The first molecule from this JV has completed toxicity studies in the U.S. and will move into Phase I clinicals in Europe by November, followed by Phase II (a) clinical in early 2004. The first product from its JV with IBPP, Italy, (for applied research in Europe) would be made available in November, he said. The company is actually in the process of completing the Rs. 450 crore investment plan in nine projects, the funds for which were raised in 1999 from Schroders (which holds 32.9 per cent stake). While eight plans have been implemented, including an ERP programme, one formulation plant was scheduled to be completed by the year-end, he said. Our Chennai Correspondent writes: This is, perhaps, the first time that a Chennai-based `old economy' company has gone to China and successfully com- missioned the joint production unit. Sundram Fasteners, a TVS group firm piloted by Suresh Krishna, has also gone to China and done the `bhoomi puja' recently after the SARS threat has subsided substantially. Nonetheless, a good many Indian pharma firms have already set up shops in China. The investment that Orchid has made in NCPC Orchid Pharmaceuticals Company, the joint venture, however, ranks it top among the rest of the Indian pharma players. The board of the joint venture will have equal representations between the two companies. However, the Chief Executive Officer and Chief Financial Officer are from Orchid. The management of the company is also with Orchid. At present, the facility employs 60 people. This number will go up to 110 by the time the second phase goes on stream. There are about 10 expats from India serving this joint venture.
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