The Indo-Israeli pharma venture Orion Genomics will soon shift its manufacturing base to Himachal Pradesh from the existing one in Maharashtra. Logistical advantages to the company along with tax concessions offered by the Himachal Pradesh government are the major reasons for the company shifting its manufacturing base, according to reliable sources.

Currently in India, Orion is the only manufacturer of 16 DPA, a steroid intermediate in its plant at Kalyan near Mumbai. 16 DPA is manufactured from Diosgenin, which is extracted from the roots of Dioscorea plant, grown in the hilly regions of Himachal Pradesh, Uttaranchal and Nepal.

There is a major logistical disadvantage in the transportation of these roots to Kalyan from HP. Shifting the manufacturing and administration base to the state could avert this. Equally advantageous is the fact that HP government is offering a host of sops on products manufactured in the state. The new units are offered full income tax exemptions for the first 5 years and 50 per cent I-T exemptions for the next 5 years.

25 domestic pharma companies, including Dr Reddy's, Cipla, Zydus Cadila and Torrent, are setting up plants in Himachal. Even medium sized companies like Micro Labs, Unichem, Bal Pharma, Elder Pharma and Ajanta are also planning to put up their manufacturing facility in the state.

16 DPA is used in the manufacture of drugs like progesterone, thenesteroid, testosterone, hydrocortisone, betamethosone, beclamethasone, pretnisolone, and androstalone. Orion started its operations in India during early 2003. The company has the capacity to manufacture four tonnes of 16 DPA. The market for the product in the country is six tonnes. 16 DPA is also imported into the country from China. Orion also manufactures DHA Acetate in its plants.