Shilpa Medicare, a leading active pharmaceutical ingredient manufacturer, is investing Rs 100 crore for setting up its new oncology API manufacturing facility and research and development centre at Raichur in Karnataka. The new manufacturing facility is expected to be commissioned by mid 2008.

The company is fully focused on R&D, to offer quality products at competitive prices and also for development of new products. It undertakes innovation of new products as per customers' requirement. The production technologies of all existing products have been developed in-house and the R&D efforts are aimed at developing highly efficient and cost-effective technologies and manufacturing processes.

Speaking to Pharmabiz, Vishnukanth Bhutada, managing director, said, "We are investing close to Rs 100 crore for setting a new manufacturing and R&D centre. We have already acquired 21 acre land in Raichur Industrial Growth Centre and it will start commercial operation by mid 2008. We have been approved as 100 per cent EOU from development commissioner CSEZ and construction of new manufacturing facility and R&D centre started. Once our facility is ready, we will go for the regulatory approvals of US FDA, UK MHRA, TGA Australia and European EDQM Korean FDA and other regulatory agencies".

The company has major plans in oncology segment and hopes to become the largest manufacturer of oncology APIs in India and one of the top ten APIs suppliers in oncology globally. Its R&D is well positioned to develop and commercialise the oncology products which are going off patent from 2008 to 2011. "Currently, our 25 new products are in the pipeline and we are targeting more of products for the US and Japan market. The company is planning to recruit around 75 more scientists in new R&D centre at Raichur", he said.

Recently, the company has entered into a memorandum of understanding (MoU) with LOBA Finchemie AG, Austria, to acquire 100 per cent shares of LOBA in an all-cash deal. "LOBA's acquisition will fast forward Shilpa Medicare's vision of becoming India's leading manufacturer in the high growth oncology and CRAMS sectors. LOBA, with its product range long-standing customer relationships in highly regulated markets, and internationally certified and compliant R&D and manufacturing facilities, is a perfect strategic fit for Shilpa Medicare. Given our highly skilled talent pool and low operational costs, the Shilpa-LOBA combination would be a formidable entity in the global oncology and CRAMS sectors," Bhutada said.