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AstraZeneca to focus on more in-licensing deals, brand acquisitions
Nandita Vijay, Bangalore | Wednesday, August 23, 2006, 08:00 Hrs  [IST]

AstraZeneca Pharma India Ltd has no plans to enter any of the excise free zones at Himachal Pradesh, Uttaranchal and Jammu & Kashmir to capitalise the advantage of tax sops. The company will continue to operate from its lone base in Karnataka at Bangalore. However, a key area of focus is to evaluate in-licensing deals or brand acquisitions to drive inorganic growth.

"AZ India would continue to manufacture at its site located at Yelahanka in the outskirts of Bangalore. The parent company has a strong commitment and investment in India through its manufacturing facility, discovery research centre, sales and marketing organization. Its global Process R&D facility coming up at an investment of approx. US$ 12 million is expected to be commissioned in early 2007, Bhasker Iyer, managing director, AstraZeneca Pharma India told Pharmabiz.

The company's strategy in the Patent regime is to assess all opportunities to drive robust organic growth. There is preparatory work going on to access new molecules and expedite time lines to launch, by increasing its level of engagement in global clinical trials. "We will continue to evaluate inorganic growth opportunities through in-licensing deals or acquisitions of brands, which are a clear logical and strategic fit in our portfolio. We have already acquired an anti-infective brand called 'Vancocin CP' from Eli Lilly in India in the critical care segment, which was launched by AstraZeneca India in March 2006. Going forward we intend to strengthen our presence in different therapy areas," he stated.

On the company's initiatives in the area of contract research and contract manufacture, the AZ India chief informed that around 8-10 global clinical trials have been going on in India for some time for different molecules and indications. For Indian specific drugs, it conducts Phase IV trials in oncology and critical care. This is only to ensure drugs are evidence-based and science-based. Now, it is working to augment the number of clinical trails. The company is also in the initial stages of evaluating other areas of discovery like data management and statistics.

With regards to contract manufacture, the parent company does focus on India to leverage its potential to be an outsourcing hub for API's. Its bulk drug unit has been approved by the Swedish regulatory authorities and would be an exclusive supplier of a bulk drug to AstraZeneca, Sweden.

The India focus areas are cardiovascular, oncology, critical Care, CNS (Local Anaesthesia) and Respiratory therapy areas. AZ India, unlike other AZ subsidiaries, also has a strong presence in the maternal healthcare segment.

AZ India which clocked a turnover of Rs. 233 crore in December 2005 at a growth rate 18.5 per cent. In second quarter of 2006, the company registered Rs. 130.70 crore turn over.

AZ India is gearing up to achieve top line growth of 20 percent year-on-year. It would invest in building brands, market research, sales force effectiveness and training. Growth via the inorganic route would be through in-licensing deals and/or acquisitions of brands. On the human resources front, it would work towards in-house manpower development and make India a talent resource centre for Asia-Pacific and other global markets.

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