Karnataka’s Bal Pharma has been identified by the US-based Plandaí Biotechnology Inc., the manufacturer of a highly bioavailable Phytofare, for distributing it in Indian market.

Plandaí executed an exclusive distribution agreement (EDA) with Bal Pharma Ltd. Under the terms of the agreement, the latter will use the company's Phytofare in their finished formulation products while also distributing Phytofare as an active ingredient across India. The two-year renewable agreement gives Bal Pharma exclusivity for its territory and fixed pricing based on volume in exchange for defined annual off-take.

“Phytofare is an innovative green tea-based product. Its key attraction is the advanced extraction technology. The objective of entering into a distributive pact is that the product is niche. The adoption of a superior technological process leads to considerable advantage to market it as a nutraceutical in the over-the-counter (OTC) segment,” Shailesh D. Siroya, managing director, Bal Pharma told Pharmabiz.

For Bal Pharma, it is the first distribution pact with an international player. The company views it as a move to catapult its pharma formulation and nutraceutical product development into the next phase of advanced technology manufacture.

“We saw an opportunity to move up the production technology ladder with this viable innovative process which is viewed to be far more efficient and economical in terms of using the green tea ingredient which is extensively available in India. Moreover, there are not many such products in the Indian market and we could garner sales out of this, he added.

Phytofare with its established bioavailability and pharmaceutical quality, is an ideal fit with our current product mix. In fact, we have been monitoring its progress and clinical trials outcome. Now we are  pleased that Plandaí is positioned to become a valued supplier as we work together towards our mutual purpose of providing a better and healthier lifestyle through quality products and innovation, noted the Bal Pharma chief.

Last month, the Bengaluru-based pharma company stormed into India’s Rs.4,000 crore OTC market through its subsidiary Lifezen Healthcare with a novel ophthalmic drops Eye Spa.

“With Phytofare, we intend to maximise our experience in the OTC space which is a totally different marketing platform,” noted Siroya adding that with Plandaí, it did discuss the potential of using this technology for its in-house manufacture.

“With a proven track record as a manufacturer, exporter and distributor of pharmaceutical finished formulation/bulk drugs, Bal Pharma should quickly be able to generate substantial market penetration for Plandaí. Our agreement with such a highly-regarded Indian company further validates the 15 years of research that has gone into bringing Phytofare to market and the solid science behind our phyto-available products,” said Callum Cottrell-Duffield, vice president of sales, Plandaí.