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Janssen-Cilag, pharma division of J&J, may achieve a 30 per cent growth this calendar year
Our Bureau, Mumbai | Thursday, August 2, 2001, 08:00 Hrs  [IST]

Janssen-Cilag Pharmaceuticals, the pharmaceutical division of multinational consumer business $ 12 billion Johnson & Johnson (J&J), with a compounded annual growth rate of 10-12 per cent, may post a 30 per cent growth in net profits this calendar year.

The company has around 35 brands of which only 12 figures as core brands. Raricap (folic acid) is the largest selling brand. Folic acid is effective in the treatment of megaloblastic anemias as may be seen in tropical or non-tropical sprue, in anemias of nutritional origin, pregnancy, infancy, or childhood.

Driven by Eprex (human erythropoetin), an anti-anaemic research drug developed by its parent company, the Rs 100 crore Indian company is expected to cross Rs 110 crore turnover this calendar year. In two years, Eprex is expected to figure in the top five brands across all therapeutic classes.

The sales figures are at variance with what is being reported by market researchers. According to an informed market source, the market research agencies report lower sales, as they are not privy to all the sales that occur from such a closely held, secretive, profit-oriented company. However, there was no way to confirm any of the information officially as the company does not answer queries.

It is said to have made a quiet but steady performance in a turbulent year when most pharma companies are static or have drifted.

The company has three focus segments: prescription trade which accounts for 70 per cent of its business, and growing areas of original research (20 per cent) and over the counter trade which is 10 per cent.

Five of the company's drugs feature in the World Health Organsiations's essential drug list. They are: antipsychotic Halopidol (haloperidol), anthelmintics STA (mebendazole) and Dicaris (levamisole), and antifungals Daktarin (miconazole), and Nizral (ketoconazole).

Eprex has been redeveloped in different strengths for oncology and will slowly, be used in diabetology as well. Eprex oncology product was launched in April 2000. An Rs 13.5 crore product, Eprex is expected to double sales this year with the addition of the oncology product. Eprex nephrology is expected to hog a sale of Rs 20 crore while Eprex oncology may get around Rs 5 crore.

Durogesic transdermal therapeutic system (TTS), a patch to reduce cancer pain, was launched in June last year. Durogesic supplies Fentanyl, a highly potent opioid analgesic, to the body continuously for 72 hours. Durogesic TTS predominantly affects the µ-receptors. It is 25 times more effective than morphine.

Anit-emetic Motilium (domperidone malleate) was launched in the gastro segment in January this year. Stugeron, the brand leader in vertigo, has been revamped. Sibelium, a therapy for migraine, has been revitalized. Antifungal Nizral (ketoconazole) was also turned around and is in double digit growth mode (18-20 per cent). Nizoral (1 per cent ketoconazole) anti-dandruff shampoo was launched in February this year.

Topomac (toperamide), one of the fastest growing molecules in the international market for three years, was launched in September last for epilepsy. Imosec F is no more a priority product for Janssen Cilag, which has time till December to finish its stocks after the government banned the product.

It is the Core Franchisees division that is expected to usher in the strong growth. Twenty-five new product specialists were hired last year in a major effort to beef up the division that was hanging around for quite some time. Incentives, motivation and supportive unions are the factors that have led to such growth. The company increased its OTC activity last October and about 60 people were hired.

Coldarin, which was with the consumer division (a product bought from Knoll Pharmaceuticals Ltd) of J&J, was transferred to Janssen-Cilag in 2000 end. A television campaign was also launched for Coldarin, which has sold more in the first half of this year than in any whole year in the past. Informed sources say it could cross around Rs 8 crore by the year-end. This shows that the OTC activity has taken off very well. The company has a field force of 400 of which 350 are handling prescription brands.

The idea of the Indian subsidiary is to create a critical mass to prepare for the post-2005, product patent regime. The company is also said to be evaluating companies that are up for acquisition. Contrary to figures available from market researchers, says the source, nothing is showing negative growth in the company.

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