Arch Pharmalabs, a Mumbai-based major player in distribution of intermediates & APIs, is now setting its eyes on the European countries to expand the reach by acquiring some of the established API and generic based companies.

Talking to Pharmabiz, company chairman and managing director Ajit A Kamath, said they have zeroed in on Europe as the territory remained a big market for contract and APIs based business for a very long time, and enjoyed all the basic amenities. The company has already made some acquisitions in the domestic arena. Last year, it bought Watsol Organics Ltd, a manufacturer of pharmaceuticals and agro-chemical intermediates in Hyderabad.

Talking about the parameters of acquisition, he said the selection of the company would be done only on the basis of its revenue range in a year. "The only criterion for the acquisition of any company (Intermediate & APIs) is that that the company should be holding at least over 100 million dollars of revenue per year and only then it would be taken into the consideration,'' he said.

Besides, the company also has set its target to emerge as one of the top five intermediate & API supplier companies around the world, by expanding and consolidating the ongoing projects. It may be noted that Arch is considered the leading Intermediate & API supplier company within the country and is also providing services to some of the leading overseas companies.

"Right now we are providing our services to the top generic companies within the country. But at the international level, we would like to supply services to each and every generic company around the world by the year 2010", he added.

Arch is also focusing on the R&D sector. In this context it has been working continuously with various partners coupled with its in-house R&D strength for producing intermediate & APIs in a more cost efficient manner. The company is also having tie-ups with leading technology partners like Codexis Inc (USA) and DSM (Netherlands).

Talking about some other targets the company has set for forthcoming years, Kamath said, the company would definitely be involved in the mergers and expanding its criteria for making drugs. He said the company at present was having Rs 515 crore of turnover which would be brought up to the Rs 1000 crore by the year 2010. The company is also progressive in terms of its production capacity and desires to exceed it over 2500 tons per year by the end of 2009 as against present 2000 tons, he added.