Twilight Litaka Pharma plans new Sikkim factory

Twilight Litaka Pharma , or TLPL, has signed deals with two companies for drug outsourcing, sources told CNBC-TV18's Haresh Soneji, adding that the total value of the two deals is about Rs 50 cr per year.

The management has not been able to confirm these source-based reports. At present, the company sales stand at Rs 200 crore, which is about 25% on revenues, Soneji said.

The company's first deal, which is not public, is with Russia’s Art Lifescience , he said. This deal is for the development of new products, which are already developed and are in finalization stage. These products, delivery of which is to start by 2008, will net revenues of Rs 15-20 crore per annum.

The second deal is with Malaysia's Elken , Soneji said. Elken plans to source its entire requirement for India and other Asian counties from TLPL. The deal is valued at Rs 20-30 crore, delivery of which starts January next year.

TLPL has struck a third deal with Herbalife , he said. The later has already started sourcing from TLPL. The agreement is for a minimum order of Rs 50 crore per annum. If the delivery process and supply chain is perfect, Herbalife may extend that to other Asian countries. So, that will give a further fillip.

Sources told Soneji that the company plans to do a private placement of up to 15%. This seems to be a bit premature now, he said. The placement may be done before March 2008. The company is also in talks with domestic and international players. The promoters currently hold 63.7% stake in the company.

TLPL plans to start a new factory in Sikkim, Soneji said. It already has a strong presence in the northeast segment. Capex for the new factory is likely to be Rs 50 crore. So, that should give a further fillip to the stock.

The company is also in the process of acquiring an injectable unit from private companies for Rs 20 crore, Soneji said. For this, TLPL has already shortlisted three companies, he added.