The Ahmedabad-based Claris Lifesciences Ltd. is all set to raise an External Commercial Borrowing (ECB) to the tune of USD 25 million (Rs 100 crore). An announcement to this effect is expected any time now.
The company is planning to infuse the fund for expanding its product range, new drug development and expansion of the present manufacturing capacity including API production. The expansion project started with an investment of Rs 240 crore will be speed up with the infusion of fresh funds by the middle of 2007, according to Nayan Rao, director-Business Development, Claris Lifesciences Ltd.
The ongoing expansion project of Rs 240 crore, as the part of Claris' international plans of expansion of existing capacity, setting up of new facilities, R&D and product development initiatives, has been supported by a USD 20 million investment by the global private equity firm, Carlyle Group in March 2006.
He said that the company is on a strategic expansion aiming at the European Union, US, Australia, Canada and China. The company, which has a subsidiary in UK, will soon set up its subsidiaries in two more countries in the EU within two months. It also has plans to set up its operations in another seven to eight countries in the Union shortly. The target is set to cover 17 countries in the EU by 2007.
Claris has also announced its plans to focus on niche areas of Biotech products, Cardiac and Oncology products apart from its thrust on neutraceuticals segment. The company expects to come up with a couple of products in Cardiac and Oncology segments including a new drug delivery system for cancer, by this year end. Claris is planning to file 15 ANDAs within the next few months in addition to nine ANDAs filed recently.
The domestic market would be a significant part of the expansion plans. The company has plans to set up 15 marketing offices throughout the country within next few months. Eight offices out of these would be operational by next month..
"We expects to accomplish a top line of Rs 400 crore turnover while the bottom line would be around 12 percent by the end of the calendar year. With the utilization of the new ECB fund, the company is set to accomplish a turnover target of Rs 1000 crore by the end of 2009," Nayan told Pharmabiz. He said that the company expects a 45 percent share from the domestic sales in the total turnover Rs 400 crore expected this year.
Claris, which posted a turnover of over Rs.290 crore during last year has upgraded its facilities and received approval from international regulatory authorities including MHRA (UK), TGA (Australia), NAM (Finland), GCC (Gulf Co-operation Council) and ANVISA (Brazil). The company is targeting US FDA inspection and approval of its manufacturing facilities in current year.