The Bangalore-based Bal Pharma is planning to enter the area of contract research. As part of this, initially, the company would offer Full Time Employees (FTE) for research services to companies in the US and Europe on contract basis. The company is also planning to set up a dedicated research facility, which will be commissioned by mid-February to handle full-fledged contract research.
The new CR facility located at Bommasandra in the outskirts of Bangalore is set-up at a cost of Rs.2.5 crore. "Our objective is to capitalise the growing global research outsourcing opportunities of post 2005," Shailesh Siroya, managing director, Bal Pharma Ltd., told Pharmabiz.com
In order to explore the potential in CR business, the company has started hiring a team to augment the current strength of 30 scientists, which includes seven PhDs, post graduates and other support staff to 50 by end of 2004. The FTE revenue model is evolved to initially focus on basic research. Once the revenue model is stabilized, efforts will be on to offer services in chemical manufacturing research activities for new chemical entities (NCE's) in a phased manner. The company has set a target to generate revenues to the tune of $1.2 million over the next 12-18 months.
The concept of FTE is catching on because global pharmaceutical companies are keen to outsource chemical manufacturing research activities or contract research services from low-cost markets like India as they are confident that Indian pharma-biotech scientists could deliver advanced research skills to meet the increasing demand, fill in the technical capability gaps and provide the much-needed cost advantage, explained Siroya.
Bal Pharma, has posted a turnover of Rs.46.68 crore in Q3 ending December 2003.