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Last Updated : Aug 05, 2019 06:39 PM IST | Source: Moneycontrol.com

Orbimed-backed Eurolife targets Rs 1,500-crore turnover in 5 years

Eurolife's Chief Executive Officer Sandeep Toshniwal said the company would be further investing 50 million euros for expansion of its plant and operations, enabling them to expand in the European and US markets.

Viswanath Pilla @viswanath_pilla

Eurolife Healthcare, which is India's largest maker of intravenous (IV) fluid formulations, plans to expand into highly-regulated markets such as Europe and the US, on back of its acquisition of Teva's Intravenous Infusions plant in Hungary last month.

Eurolife's  Chief Executive Officer Sandeep Toshniwal said the company would be further investing 50 million euros for expansion of its plant and operations, enabling them to expand in the European and US markets.

"The expansion will be done through internal accruals and bank loans," Toshniwal said in a recent interview to Moneycontrol.

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Teva's plant comes with the European Union (EU) Good Manufacturing Practices (GMP) certification, which Eurolife wants to use as a springboard to launch IV products across Europe, and in future in the US as well.

With Teva's plant in its pocket, Eurolife is targeting to expand sales by three times in the next five years from a turnover of around Rs 500 crore in FY19.

"We are growing at 40-50 percent; our aim is to become the world's largest IV formulation maker in the world," Toshniwal said.

Intravenous (IV) Infusion is a therapy that delivers fluids containing prescription medicines directly by drip or a push directly into a vein.

Teva wasn't initially interested in selling the plant when we approached them, but a change in strategy globally has made them divest the plant, Toshniwal said

The Israeli-drugmaker has been rationalising product portfolios and manufacturing operations across the globe to cut mounting debt largely borrowed for purchasing Allergan's generic business and to overcome the worst pricing pressure in its key US market led by a loss of exclusivity of its key drug Copaxone.

Fast lane growth

Eurolife started in 2001 as a trader of pharmaceutical products and ventured into IV infusion fluid manufacturing.

The major breakthrough came in 2016 when healthcare-focused private equity firm Orbimed invested around Rs 100 crore. The investment helped Eurolife to buy US-injectable drug maker Baxter's infusion business in India in the same year.

The acquisition of Baxter infusion business helped Eurolife to build a pan-India business, along with the addition of two manufacturing plants in Tamil Nadu and Uttarakhand. Eurolife has a form-fill-seal (FFS) infusion plant in Waluj, in Maharashtra and oral solid dosages plant in Roorkee in Uttarakhand.

India's IV infusion business is around Rs 2,000 to 2,500 crore, which is largely institutional. Of the total market, about one-fourth is from government hospitals, largely through procured to tenders.

Eurolife, which has about 18-20 percent market share, is spending money on adding capacities across its manufacturing sites to participate in government tenders.

In India, Eurolife competes with MNCs such as Fresenius Kabi and BBraun, along with several other domestic companies.

Toshniwal said the focus on quality, pan-India presence, low cost of manufacturing and comprehensive product basket will keep the growth going.

Eurolife is working on developing new IV infusion formulations involving amino acids, in addition to developing 5-6 new products for India and emerging markets. The company is also focusing on innovative packaging solutions.

Toshniwal said he is also looking at acquisitions, that will help him to expand in regulated markets.

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First Published on Aug 5, 2019 06:39 pm
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