Optimer Pharmaceuticals has received approval for Dificid from the Food and Drug Administration (USFDA) and Biocon is the exclusive API supplier to Optimer for this product.
Kiran Mazumdar, CMD, Biocon in an interview with CNBC-TV18 speaking about the same said that Optimer is planning the launch within the next three- four months. So, in the short-term Biocon will have some contribution to the bottom line from these supplies. "However, the real the real opportunity will be when they reach the peak levels in the market. Those levels are expected to be reached in the next three- four years," she added. Below is the verbatim transcript of Mazumdar's interview with Udayan Mukherjee and Mitali Mukherjee of CNBC-TV18. Also watch the accompanying video. Q: How material could this news be for you because you are the exclusive API supplier to Optimer for this product? When do you start supplying and how big could this potentially be for you? A: We are exclusive supplier of the drug substance and the opportunity will kick of immediately because we are filling up their pipeline for their launch requirements. And since they have just received USFDA approval they are planning to launch within the next three- four months. So, obviously in the short-term we will have some contribution to our bottom line from these supplies. But, the real opportunity will be when they reach peak levels in the market. Those levels are expected to be reached in the next three- four years. So, that is when the real opportunity pans out for us. In any case even in the interim, this is an important opportunity for Biocon. It will mean that this will be a high margin supply for us. It is important because our business has large dependence on API. As you know most of your APIs are commoditizing fairly rapidly, so this is a windfall for us. Q: Is this going to be commoditized very easily or do you see this as a higher margin opportunity, this particular API supply? A: This is going to be a higher margin sustainable opportunity for us. This is because this is not a generic, this is a new molecule. This is first in class drug. ItDiscover 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!
