The Mumbai-based Unichem Labs is planning to raise $ 40-50 million from the open market to finance its expansion plans, it is learnt. The company is looking at routes like private placement of the equities or multiple FII placements for raising the money.

The sum raised will be utilised by the company to acquire an existing API facility or put up a green field manufacturing facility, at a cost of Rs 50 crore. Besides, the company is setting up its third formulation facility at Baddi in Himachal Pradesh. The plant is expected to be commissioned by July 2006. The company's second formulation plant at Baddi is under construction and is expected to be commissioned in April 2005.

When contacted by Pharmabiz, Dr. PA Mody, chairman, Unichem Labs, said, "At present, we have no plans to raise any money. However, at an appropriate time, we may look at the option of multiple FII placements."

Unichem Labs will file its first ANDA in 2005 and is expecting to launch its formulation in US in 2007.

Unichem has significant presence in anti-infectives, cardiology, psychiatry, neurology, anti-diabetics, anti-allergics, hormones and vaccines.

Exports currently account for 28 per cent of the company's turnover, which is expected to reach 35 to 40 per cent in the next couple of years.

Unichem Labs achieved net sales of Rs 352.54 crore for the year ended March 2004 compared to Rs 292.72 crore in the previous year.