Mangalam Drugs & Organics Limited (MDOL), the Mumbai-based bulk drug and chemicals company, is to launch two anti-malarial bulk drugs this year. Apart from the product launch, as part of the expansion, the company is setting up a new R&D centre at Vapi at a cost of Rs 2 crore.

The company will launch the anti-malarial bulk drug - mefloquin, in June this year. Mefloquin, which is to be launched for the first time in India, costs around Rs 50,000 per kg in the global market. Zydus Cadila, Dr Reddy's, Cipla are among the companies which market the formulation drug of mefloquin in India. There will be production of one tonne at the initial stage. The company expects a production of 20 tonne/annum in future. Presently, the Indian companies are depending mainly on Europe to import mefloquin, informed Govardhan M. Dhoot, chairman and managing director, MODL.

The other anti-malarial bulk drug, which is under development, is lumafantrine. The bulk drug, which is expected to be launched in December this year, is recommended by WHO for anti-malarial segment. Presently, in India no formulation of lumafantrine is available. Novartis is a leading player of lumafantrine formulation worldwide. In the world market, lumafantrine costs around $400-450 per kg. Both of the drugs will be manufactured at its Vapi plant.

The Vapi plant is under modernisation which will be completed by March this year. The production capacity of the Vapi plant, which is expanding as per the US and European regulatory requirements, will be increased from 900 tonnes/annum to 1500 tonnes/annum.

Apart from the ant-malarial bulk drugs, MDOL plans to launch two products in the pain management sector. The development of the drugs will start within 2-3 months. It is expected to be launched by mid 2007. Recently, MDOL had launched other key anti-malarial drugs such as artisunate and artemether.

Meanwhile, as part of expansion, the company is setting up a R&D centre with an investment of Rs 2 crore in Vapi. The centre, which will be commissioned within next 6 months, will accommodate 30-35 scientists. The plant, spread on an area of 3000 square feet, is built with an eye on the regulatory markets. Mangalam is also planning to file DMFs for bulk drugs in Europe by mid 2007. Presently, the company spends 4 per cent of the turnover for R&D.

Mangalam Drugs, promoted by Dhoot family, has state of the art multi-product manufacturing facilities at Vapi in Gujarat and Sangamner in Maharashtra for production of bulk drugs, perfumery chemicals, inorganic chemicals and disperse dyes intermediaries.

The company is to discontinue the production of aluminium chloride in its Sangamner plant.

"As we are to discontinue the production of aluminium chloride, the only chemical manufactured at Sangamner plant, the plant will be closed down soon. The production of aluminium chloride will be stopped by the end of this month. However, there is no plan to sell the plant in near future," Dhoot said.

Mangalam Drugs, which started first production in 1977 with the perfume chemical business in Vapi plant, had entered into the bulk drugs segment in 1985. Anti-malarial segment contributes around 55% of the turnover of the company and in the pain management segment company is among largest volume wise producers of nimesulide. The company has branches over India and also in other countries like Sri Lanka, Bangladesh and Pakistan.

For the nine month period ended December 2005, the company gained net sales of Rs 78.28 crore as the net profit stands at Rs 1.55 crore. Last year ended March 2005, the company reported sales of Rs 90 crore with net profit at Rs 2 crore.