Regulated markets to fetch Rs 250-300cr in 2 years: Nectar

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Drug firm Nectar Lifesciences reported a sales turnover of Rs 341.36 crore and a net profit of Rs 31.83 crore for the quarter ended March '11.

Dinesh Dua, CEO, Nectar Lifesciences in an interview with CNBC-TV18 spoke about the latest happenings in the company and the road ahead.

He said, "We expect close to about Rs 250-300 crore coming out of the regulated markets in the year '13-'14 -'14-'15."

Below is the verbatim transcript of his interview with Reema Tendulkar and Gautam Broker of CNBC-TV18. Also watch the acccompanying video.

Q: How do you think the growth in the formuation business is going to pan out in FY12?

A: We have had a very robust quarter wherein we registered a very good growth of 45% over the last quarter-on-quarter (QoQ) between two years. Annually, on a year-on-year (YoY) basis, we have very robust growth of 26%.

Currently close to about Rs 200 crore out of Rs 1,116 crore gross, last year comes out of formulations for us. But, going forward in the next five years our objective is very clear in formulations.

We would like to see an exponential growth in the next five years to atleast about Rs 600-700 crore going forward. A predominant part of that is going to be in the regulated markets.

We have had two approvals in the last quarter. One for ministry of Japan, which is one of the most lucrative markets in the world. Second one again from a regulated market of South Africa. Another one for our molecules.

I am very happy to inform you that we filed our first ANDA for the market of US yesterday morning. Our journey to the regulated markets for the formulations has well and truly started.

Q: What is the kind of growth that you expect in your regulated markets and what more by of a filing do you have in the US markets?

A: Currently, we are in the regulatory space which means that we are filing for the regulated markets. There is always a lag of close to about two- three years before the revenue streams start coming in.

So I look at two-three years from now. We expect close to about 250-300 crore coming out of the regulated markets in the year '13-'14 -'14-'15.

In addition to that we also have certain alignments that we are working out with we are a very large companies as well as niche companies to expedite our entry on formulation of the regulated market.

Until the time that we get into the regulated markets because of process makes that long. We are entering to close to about 50-60 other geographies which will keep sustaining our business and formulations to the extend of about nearly Rs 200 crore over the next two years.

So you will have around Rs 250 crore coming in the next two years from ROW, rest of the whole market, followed by another two years of regulated market so all about Rs 500 crore in four - five years.