Hyderabad based Gland Pharma is planning to raise $25 million to meet its fund requirements for strengthening its manufacturing facilities and for supporting its marketing efforts to foray into regulated markets. The company is evaluating different options including an initial public offer, private placement of equity shares and fresh debt from financial institutions. The company is likely to take the decision on the IPO within the next two months. The funds will be utilized for the next three years.
The company has recently received USFDA approval for its injectables facility at Dindigul near Hyderabad. The approval has been obtained for some of the products that the company is going to manufacture for Apotex Corporation, USA. It is the first Indian firm to get USFDA approval for liquid injectables. The approval will enable the company to achieve rapid export growth. In the current year, the company is expecting around $ 5 million and is aiming to achieve $ 100 million by 2007.
The company, which is a pioneer in Heparin technology, has set up its manufacturing facility in collaboration with Germany-based Vetter Group. It holds a leading position in the Glyco Amino Glycons (GAGs) and Low Molecular Weight (LMW) heparin. It manufactures Active Pharmaceutical Ingredients (APIs) and injectable formulations for segments such as ophthalmology, osteoarthritis, anti-coagulants and gynaecology.
Contract manufacturing contributed Rs.10 crore to last year’s Rs.50 crore turnover, of which exports accounted for Rs.8 crore. The balance was contributed by domestic sales of injectables. The company is hoping to achieve a turnover of Rs.65 crore this year.