Cipla spends Rs 274cr to set up API facilities
Pharma major Cipla has spent Rs 274 crore towards setting up an Active Pharmaceutical Ingredient (API) R&D facility at Patalganga in Maharashtra, and commenced commercial production of anticancer APIs at Bommasandra, Bengalore and anti-ulcerant APIs at Kurkumbh in Maharashtra.
August 05, 2013 / 08:55 IST
Pharma major Cipla has spent Rs 274 crore towards setting up an Active Pharmaceutical Ingredient (API) R&D facility at Patalganga in Maharashtra, and commenced commercial production of anticancer APIs at Bommasandra, Bengalore and anti-ulcerant APIs at Kurkumbh in Maharashtra.
Drugs pricing: 4 pharma firms move HC against govt order"We have set up an API R&D facility at Patalganga, Maharashtra, and commenced commercial production of anticancer APIs at Bommasandra, Bengalore and anti-ulcerant APIs at Kurkumbh, Maharashtra. Cipla has also recently completed the project on APIs of antiretrovirals (ARVs) in Kurkumbh, Maharashtra. Total capital expenditure for these projects is about Rs 274 crore," Cipla Chairman YK Hamied said in the company's annual report.The Patalganga project for the upgradation and scale-up of API facilities is nearing completion. It is anticipated that operations will commence during 2013-14. The company is also scaling up its anti-cancer formulations facility at Goa.Besides, Cipla is in the process of setting up a new R&D and administration facility at Vikhroli in Mumbai, Hamied said.For future prospects, in-licensing opportunities are being considered, which would provide an unparallelled platform to launch new, innovative and complex products, he said._PAGEBREAK_In the international markets, the contribution from exports to the total revenues is more than 50 percent and is further expected to grow over the years, Hamied said.Cipla is evaluating several business models such as capturing value through direct presence in key priority markets including South Africa, US, Europe and Australia, he added.The company recently completed the acquisition of 100 percent of share capital of Cipla Medpro in South Africa, at ZAR 10 per share amounting to a total investment of Rs 2,707 crore.Hamied said Indian pharmaceutical market is highly fragmented, and as more players join the industry, the landscape is becoming more competitive.For the generic industry at large, there are growing concerns over patent litigations and regulatory challenges.The company has challenged some patent applications and post-grant patents and is therefore, involved in a number of litigations, he mentioned. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
