Dishman Pharma invests $20m in new API facility

5265 Investors following Dishman Pharma. Share this News with them.

0

Like this story, share it with millions of investors on M3

Dishman Pharma invests $20m in new API facility

In an interview with CNBC-TV18, VVS Murthy, CFO, Dishman Pharma, spoke about the latest happenings in his company and sector.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » RELATED NEWS Consolidated revenues to grow 20% next year: Dishman Pharma Dishman Pharma Q3 cons PAT down at Rs 33.1 cr ALSO READ See latest News about Dishman Pharma See previous management interviews See what other Experts & Brokerages are saying about Dishman Pharma Dishman Pharma BSE | NSE 30/05/12 Are Mutual Funds betting on Dishman Pharma?

Q: What about your other initiatives? Your contract manufacturing agreement with Codexis, what are the revenues looking like in the current year and more importantly how do you see FY11 panning out?

A: In the current year, we may not be able to get any revenues from this agreement. Codexis is a manufacturer of biocatalysts. We are expecting three types of revenue streams from this. One is our existing products, which we can manufacture by using this catalyst, where a cost reduction can be possible. Second, we would have to approach our customers and get new business.

Third, Codexis doesn't have any manufacturing facilities for AP Intermediates, they are getting some enquires and business proposals, they will transfer that contract manufacturing business to us. So we are expecting these three revenue streams. Now, we are identifying products and what is the cost benefit we have to work out on this and based on that we can get you some guidance sometime in the second half of next year.

Q: How much have you invested in your new API facility that you have inaugurated on Oncology, what kind of investments have gone into that and how much will the facility produce?

A: USD 20 million or thereabouts is what we have invested in the API facility for manufacture of 'hi-po' products in Bavla, this was inaugurated in January 27. Now validations are going on and once they are over the customers audit will start. After completion of customers audit then we have to start commercial discussions with our customers.

Q: So how much are you expecting by way of revenues?

A: FY11 about USD 4.5 million is expected because only a part of the year we would be using this facility for our commercial production. FY12 would be the first year of full production for us.