Wyeth India Ltd will outsource bulk prednisolone from Runwal Group for the next 30 months. As per an agreement, Runwal will manufacture prednisolone from the same Ghatkopar manufacturing facility, which it had acquired from Wyeth in June, confirmed sources.

In the next 30 months, Wyeth will outsource about 9,000 kg of its bulk prednisolone requirement from Runwal, said sources.

On the other hand, the Ghatkopar unit will resume full-scale production after its takeover by Runwals at an estimated amount of Rs 48 crore. The unit will be integrated with a Runwal Group pharma subsidiary Ariane Orgachem Pvt. Ltd.

For the past six months the unit was lying idle without much manufacturing to be done, it is learnt. Wyeth had closed down the 23 acre-spread facility for steroids like prednisolone, medrogestrone, amoxapine, hydrocortisone and hydrocortisone acetate since April 2004.

For the time being it appears that Wyeth has plans to market only prednisolone as there is no demand for products like medrogestrone, amoxapine and hydrocortisone from the domestic market. "Currently there is no plan to manufacture products like medrogestrone or amoxipine as the demand is negligible. We may reconsider our decision if the demand moves up," said Ranga Iyer, managing director, Wyeth Ltd.

According to sources, Wyeth had stopped the worldwide production of medrogestrone after outbursts from NGOs about the risk of developing breast cancer, with its sustained use.

Meanwhile, after the sell-off of its another manufacturing facility at Nashik to John Oak Remedies Pvt Ltd, Wyeth will now outsource its dermatological product Anne French from a Hyderabad-based contract manufacturer leaving the company with two manufacturing plants in Valsad and Goa (formulations). Sources, have confirmed that the next in line to go is the Valsad plant.

"Barring Goa unit, Wyeth Ltd will sell off all its plants in India. Wyeth's future strategy will be towards marketing of innovative products developed abroad by its parent or other MNCs," said sources.

Wyeth Ltd makes bulk drugs, injectibles, steroid hormones, veterinary products, tablets and syrups. It markets about 40 brands in the country. 50-60 per cent of its manufacturing is outsourced from contract manufacturers.