The Mumbai-based Alkem Laboratories has signed an MoU for the acquisition of a UK-based company, dealing with generic drugs for an aggregate valuation of INR 50 crore. This deal would come into effect within 2 months, it is learnt.

Recently, Alkem, as part of its entry to biotechnology sector, had also signed an MoU with a German company for technology transfer of a few biotech products. "Our scientists will closely interact with this company and visit the company as a part for this technology transfer. The base for our biotechnology venture will be in Taloja, Mumbai," said Samprada Singh, chairman, Alkem Laboratories.

Apart from the expansion plans in pharmaceutical area, Alkem is now eyeing food-processing sector as well. "We are also entering into food processing. About 25 per cent of the food products in India are getting destroyed. By the time the products come to urban areas, prices increase and the quality also decreases. Therefore, the food processing industry has good scope, " said Samprada Singh. "Initially, we are planning to launch the products like special sugar for diabetic patients and readymade soup combinations etc," he added.

"Now we have a growth rate of 15 per cent and our turnover is Rs 700 crore and hope to reach at Rs 1000 crore by 2006-'07," asserts Samprada Singh.

The company has also commenced operations of a bioequivalence centre -Phoenix Bio Pharma Research Centre -in Taloja, which is approved by DCGI wherein several bioequivalence studies have already been undertaken. It has started working with a French company on this front and expects to undertake bioequivalence studies for a company in England and in the process also proceed for UK approval of this centre.

Alkem Laboratories, the three-decade old pharmaceutical company, has a strong presence in anti-bacterial, pain management, cardiovascular, anti-diabetic and neuropsychiatric drug segments. Alkem is regarded as leading player in cephalosporins formulations in India. Alkem has received UK MHRA approval for both orals and injectable cephalosporins.

Alkem has manufacturing facilities in Taloja, Daman, Ankleshwar and Bhiwandi. In addition, Alkem is constructing another facility as per regulatory requirements of US and Europe in Baddi, Himachal Pradesh. The factory will be operational from March 2005.

Earlier, Pharmabiz had reported that Alkem Laboratories was planning to enter the capital market with Initial Public Offer (IPO) within a year. Initially, the shares will be listed on the Bombay Stock Exchange.