Micro Labs will manufacture all its seven Cephalosporins brands at a dedicated manufacturing unit to fulfil the mandatory requirement for marketing in the developed markets.

G Jayaraj, general manager, products, Micro Labs said, "It was a strategic decision for the company to club all its exiting Cephalosporins brands to be manufactured at a single production facility located at Bommasandra in the outskirts of Bangalore. The main objective to centralise production is to be able to comply with the international requirements. The dedicated plant for Cephalosporins brands has come up at a cost of Rs.30 crore and production will commence in early 2004.

Currently, the company markets Cephalosporin brands to the domestic market and developing nations. Its range includes Pulmof, Microcef, Bicef, Cephalexin, injectibles: Cefotaxime and Gramocef. All the Cephalosporin brands are manufactured at its Hosur plant in dedicated blocks. The current capacity of the Hosur plant is 12.3 million tablets per month, 25 million capsules per month and 3.0 lakh bottles Dry Syrup (Powder for reconstitution) per month.

The new Cephalosporin plant coming up at Bommasandra will have a capacity of 37.5 million tablets per month, 50 million capsules per month and 6.0 lakh bottles dry syrup (powder for reconstitution) per month.

The current Cephalosporin market size in India is Rs.1000 crore. Micro Labs earns Rs.40 crore annually from its Cephalosporins brands. The main attraction for this antibiotic it that it is most widely used and pharmaceutical companies in the country are pumping their investments to get a larger chunk in the segment.

Micro Labs has launched 'Spasmopriv' a new molecule called Fenoverine, for the management of IBS (Irritable Bowel Syndrome). For this, it has gone in for a licensing agreement with Belgium-based Eurodrug Laboratories for the exclusive marketing and manufacturing of Fenoverine at its Hosur plant. The product is priced at Rs.59 for a strip of ten tabs.

The current market size of IBS in the country is Rs.60 crore. With 'Spasmopriv', Micro expects to corner a market share of 10 per cent and expects to earn Rs.5 crore in the first year of its launch. Another product 'Metadoxil' for chronic hepatitis is in the final stages for a consent from the Drugs Controller General of India (DCGI) and is likely to be introduced early next year. Both Spasmopriv and Metadoxil are expected to generate annual earnings of Rs.10 crore.

The company plans to enter into a strategic manufacturing and marketing alliance with Eurodrug for generic formulations in Thailand. This will be followed by its entry into Vietnam and Sri Lanka, where Micro Labs will manufacture the products and market it through Eurodrug because of the latter's dominant presence in 20 countries worldwide including Singapore, Thailand, Hong Kong, Malaysia, Mexico, Columbia and CIS countries, stated B Prabha Shankar, country manager Eurodrug Laboratories. "Eurodrug will become a source for Micro Labs to introduce new molecules," he added.

Plans are also underway to conduct clinical trails for some of Eurodrug's products by Micro Labs.