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Tamil Nadu
K Santosh Nair, Chennai | Thursday, April 11, 2002, 08:00 Hrs  [IST]

Tamil Nadu, once an important state on the country''s pharmaceuticals industry map, has now seemed to forget the very existence of this vibrant industry. No new measures or policies have been framed to help the industry in the state over a period of more than a decade now.Though, the successive state governments in the last many years have been talking loud about revolutionary steps to boost industrial sectors in this southern state, no substantial measures have ever been undertaken by them to encourage the entrepreneurs in this area.

Thus, the works initiated in the 80s such as Alathur Pharmaceutical Complex near Chennai and the SIDCO chemical Complex at Cuddalore are reminiscent of what the governments did for the pharmaceutical industry here around two decades ago.

However, the industry in the private sector - both small and big - have taken their own course notwithstanding the apathy of the governments to help the sector grow in Tamil Nadu. Interestingly, it was the small and medium formulation manufacturers, who set the launch pad for the vibrant industry in the state over the last one decade. It was such that these formulation manufacturers had carved a niche for themselves in a short period.

Again, as the time changes, many of the units in the state have been facing tough situations with detrimental policies of the state governments. So have the problems and grievances of these manufacturers. While the state witnessed many more formulation manufacturers till the late eighties, the number has been on the decline due to many factors. Lack of government support, detrimental policies, ambiguous nature of policies framed, and high taxes have taken a heavy toll of the industry.

Such is the situation in the state, only five new entrepreneurial projects worth mentioning have taken off despite the claims and ambitions of the industry experts and analysts that the industry here could catapult itself into the limelight in the country in the period. While states like Gujarat, Maharashtra, Karnataka, and Andhra Pradesh, framed policies nurturing the growth of the industry in a much larger perspective, Tamil Nadu fell behind owing to the apathy of the state governments.

The five projects that really took off during the last decade retaining the state in the map, were those of Orchid Chemicals and Pharmaceutical, the largest exporter of cephalosporin bulk drug in the country, at Alathur in 1993-94; Shasun Chemicals and Drugs, the largest exporter of ibuprofen in the country, at Cuddalore in 1991-92; Chemech Laboratories at Gummidipoondi in 1994-95; Spic Pharma at Cuddalore in 1991-92 and Arvind Remedies at Kakkalur near Chennai in 1994-95.

The Orchid Chemicals'' Sholinganallur plant in 2000-01 and Apex Laboratories'' project at Alathur in 2001-02, are the other two in the line as the latest additions. Apart from these, hardly any pharma investments have been made in the state after 1985.

The pharmaceutical units in the state, located mostly in and around Chennai, have however learnt to live with the problems and the apathy. It is chartering a course all by itself, wanting to regain the old glory that they once enjoyed.

Anyhow, with the WTO regime looming large and strict regulations like cGMP (current Good Manufacturing Practices), cGLP (current Good Laboratory Practices) and mandatory standardizations for exports, the industry in the state is now trying to take an entire new course for the future on its own with no expectations from the state administration.

Increased focus on R&D, complying with the above mentioned norms, diversifying existing range of products, widening their market boundaries, adding and reducing the number of generics in their portfolio and an attempt to include the drugs of Indian systems of medicine to the existing range are new ways that the industry in the state have embarked upon for the rejuvenation to the future. The industry is finding new ways and means to thwart the influence of half-baked policies and the apathy of the state government. And of late, the companies in the state have completely reincarnated the ways they worked earlier.

Leading the way are the works of Orchid Chemicals and Pharmaceuticals, Shasun Chemicals and Drugs, Chemech Laboratories, Apex Laboratories, Indo-French Laboratories, Seaglad Pharmaceuticals again.

Orchid Chemicals, which has set up its in-house formulation division, Orchid Healthcare, two years back will be shortly introducing its version of Zosyn, a brand of Wyeth Lederle launched recently in the international market. To be christened as Zopercin, the new formulation is a combination of tazobactum and piperacillin, and is life saving broad-spectrum antibiotic.

Wyeth Lederle holds the patent for Zosyn. Zopercin will be the third new generation drug to be launched by the company in the life saving broad-spectrum antibiotic range. The com-pany recently launched two new generation drugs, Cepirom and Cebanex. While the former is a fourth generation cephalosporin (cefpirome 1g) the latter is a third generation combination of cephalosporin and sulbactum.

Apex which pioneered the concept of zinc in healthcare formulations marketing familiar brands such as Zincovit (zinc with multi-vitamin formulation), Zincofer (a heamantenic formulation), Trifer (a polymaltose iron supplement) and Zincoderm (zinc based oinment range for skin ailment) is to introduce new range of ointments. Of the new ointment ranges, one of them Lozee is being launched for the first time in the country. The ointment comprising of topical zinc with clobetasone butyrate is a treatment for atopic dermatitis and for mild to moderate dermatosis of soft skin areas. Lozee is being introduced in three ranges,viz, Lozee G, Lozee M and Lozee GM.

This apart, the company is also introducing Betzee for treatment of steroid responsive dermatosis such as psorasis and lichenplenus dermatitis and hyperkeratotic dermatosis. Betzee, being introduced in four ranges, viz, Betzee G, Betzee M, Betzee GM and Betzee S, comprises of topical zinc with betamethasone dipropionate. The company will also introduce Zincofer nurture kit to supplement Zincofer, the heamantienic formulation that the company currently markets.

The company is also making a foray into the herbal drug segment too. The company has lined a host of herbal drugs for specific therapeutical areas of treatment adopting the Ayurveda and Siddha systems of Indian medicine, which would add up to the company''s portfolio of allopathic drugs. The company will be launching two herbal drugs, viz, Liveral, a hepatoprotective drug for liver disorders and Dianex, an anti-diabetic drug. The company is currently in talks with Orchid Chemicals and Pharmaceuticals for a marketing arrangement wherein it would market the latter''s cephalosporin range of oral drugs.

Indo-French Laboratories Ltd recently has launcheda new product, HEyFORTE, for treating male infertility which it claims is first-of-its-kind in the country. The product contains coenzyme Q10, vitamin E acetate, l-arginine, zinc (elemental) and selenium. The combination of these ingredients for developing a product has been done for the first time in the country. The product can offer a remedy in indications such as idiopathic oligospermia and idiopathic astheniospermia. "It is a natural way of correcting vaso constriction, which means it can be useful in erectile dysfunction due to vaso constriction. There are no side effects, a major USP for the product.

A start up company, Seaglad Pharmaceuticals has come out with a combination of spirulina fortified with Vitamin A, E, C besides sodium selenite. The pro-duct christened ''Spiruvan'', acts as an antioxidant and a therapeutic, and provides for the much needed protein and vitamins. In another development, the company is to launch an anti-cold product with psuedoephedrin as ingredient. The product, which is branded as Seaced, will have the combination of psuedoephedrin, citrazene and paracetomol. The new product is expected to be launched by September. With this launch, Seaglad will become the second company in India after Sun Pharma to introduce the product.

Shasun Chemicals and Drugs has inked many alliances with multinationals in a move to catapult it to the big league. Alliances with Austin Chemicals, US; Eastman Chemicals, US; Nagase, Japan to name a few have brought the company into the eyes of many more multinationals.

All these are but few examples of how companies based in Chennai are adapting to the new scenario in spite of official apathy. There are other companies, who are also keeping pace with the changing demand.

There are also new ways of teaming up to beat competition and gaining further grounds. For instance, the idea circulated among 15 companies which are in manufacturing formulations in capsules, tablets, syrup and ointment form. The idea entails common manufacturing units for the various forms of formulations, contract manufacturing in other words. The products will be marketed by the company which owns the brand. If one company has an unit which manufactures all the forms of the formulations, it will have to assess which form is in bigger proportion to the other forms and contract manufacture the said form for other companies too. The whole aim is to bring about better utilization of manufacturing and raw material resources. The exercise would bring about the existence of seven manufacturing units instead of the present 15 that is attached to the respective company. What would happen at the end is that there would be few manufacturing units. This will lead to optimization of financial resources too.

The idea has not concretised into practical form, but is an indication that companies in the state are thinking of different alternatives for treading into the future.

However, the treading into the future is riddled with ridicule. Because offew policies that have been framed not because of the industry violation or violations but that affects it very badly. Take the state government''s decision to bring methanol under the Prohibition Act. This decision is affecting the companies in a big way. Methanol is used by the industry as a laboratory reagent. Annual requirement of methanol for a company is barely 10 to 12 litres. But methanol is being diverted to distilling illicit liquor. And in order to curb such illegal diversion, methanol is brought under the Prohibition Act. While on one hand the government agencies are now able to track stock of methanol at any given time at any source, pharmaceutical companies now have to undergo various formalities for use of methanol. In short, too much time is consumed to get the methanol stock released for in-house purpose, a thing which no company can afford to. But the authorities are least concerned.

The rationale of such policies are sometimes frivolous. But they are in place. And pharmaceutical companies have to live with it, the effort to keep pace with changing environment notwithstanding. Representations to the state government have been made but they still have to influence the administration to get the decisions in the right direction.

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