The Bangalore-based Medreich Sterilab, the technical and manufacturing arm of Medreich plc. UK, which is engaged in contract manufacture and research projects, has decided not to take up any local projects henceforth.

The decision is in the wake of its plan to consolidate focus on global projects. In addition, the company finds it difficult to undertake contracts from local players as the Indian cost does not fit to their economic feasibility.

Considering global market developments, the company now intends to initiate strategic alliances with foreign pharma majors to offer formulation development and contract manufacture services.

Medreich has four accredited plants certified by the UK MHRA, TGA Australia, South Africa MCC as well as leading multinational companies that can handle complex and a wide range of dosage forms in varied packing presentations maintaining cost competitiveness and stringent quality requirements. Recently, the company invested Rs 20 crore on its Unit IV, a South Africa MCC compliant facility to manufacture dosage forms like tablets capsules and pellets. "With such high technology investments and intensive rounds of regulatory approvals, it is not cost-effective to operate in the country for contract manufacture. Our core strengths in infrastructure and manpower made us redefine our priorities to focus on international business only, CP Bothra, director Medreich Sterilab, told Pharmabiz.com

As a fundamentally low profile company, Medreich is also silently positioning itself into customised contract research where it focuses on formulation development. Its Research and Development Centre fully equipped with a cGMP compliant lab and production area can design and develop innovative oral dosage forms. The Centre focuses on the development of products reaching patent expiry. In addition, it can also deliver Standard Technical Files to international market allowing todevelop first-to- market applications to be made after patent expiry and applications for Intellectual Property Rights (IPR).

The basic chunk of activities at the R&D division is novel drug delivery system (NDDS) including the conversion of existing molecules into bio-equivalent novel dosage forms offering more competitive product profiles. The key areas of service are stability studies and updating documentation processes. "There is a huge market for formulation development research in the global arena. Therefore it was only logical that we enter the space," informed Pravin Iyer, chief operating officer, Medreich Sterilab.

"While contract manufacturing is a differentiating factor, formulation development maximises returns with a definite value-addition. The latter is expected to add to our bottom lines in the next four to five years," added Iyer.