Strides Arcolab Limited, one of the leading soft gel capsule manufacturers with plants in India and USA is all set to file four Abbreviated New Drug Applications (ANDAs) this year.
Though he did not name the ANDAs, KR Ravi Shankar, COO, Strides Arcolab confirmed to Pharmabiz.com that these ANDAs are targeted to be filed this year but their impact on the company's business could be gauged only in the next 24 months.
Strides was passing through a bad phase since mid-2002 following the Brazilian currency debacle. It has now turned aggressive and successful with its cash-driven business strategy where it collects payments as soon as it completes a sale. During the crisis, Strides has been exploring new destinations like South Africa, Australia, New Zealand, Japan, US and UK. It has begun building a pipeline of products through a dedicated team selected for each of the regions. "These potential destinations can help balance our business in the event of any unforeseen economic crisis," he stated.
Strides has expansion plans in R&D and production at its Bilekahalli plant in Bangalore. An annual investment of 3 to 4 percent of its annual turnover goes into R&D. In view of the new developments, Strides is expected to hire extensively prior to the commissioning of both the research and production facilities to augment its exiting 1000 work force.
A new state of art facility for production of Cephalosporin formulations is coming up with at an investment of $7 million. Strides has signed a Memorandum of Understanding (MOU) with Ribbon S.R.L of Italy one of Europe's largest manufacturers of semi-synthetic Penicillins and Cephalosporins (both oral and sterile) for a 50:50 Joint Venture Company (JVC) to manufacture and market cephalosporin formulations for the regulated markets. Currently the biggest growth drivers of the company are the regulated markets where its soft gelatine and steriles are the revenue generators. "This cephalosporin facility is the future focus by us to consolidate our presence in the regulated markets,'' informed Ravi Shankar.
The company may also go for Development and Manufacturing Agreement with SORM Co., Japan, for the long-term supply of generics, OTC and nutraceutical products in Japan. It has an exclusive cooperation, development and supply agreement with Aspen Pharmacare, Africa's largest generics manufacturer and the largest pharmaceutical company on South Africa's stock exchange. "From Japan we would be able to generate earnings to the tune of $ 5 million this year. Our initiatives in South Africa are expected to generate revenues in 2007", he said.
Strides is expected to work on specific projects in the regulated markets where it will enter into contract manufacture and contract formulation development. It is now developing non-infringing processes as an alternative business proposal. All these efforts will begin to pay off from 2005 to 2007 in a phased manner, he stated.