“We are a solution partner. We leverage our contract development and manufacturing (CDMO) capabilities, we work on the R&D and manufacturing of the product, and the partner takes care of distribution,” Vivek Sharma CEO of Piramal Pharma Solutions.
Piramal Pharma Solutions, the contract development and manufacturing arm of Piramal Enterprises, is silently targeting US generics market through a partnership model.
The latest example is the launch of generic version of Amgen's top-selling Sensipar in the US, through its partner Slate Run Pharmaceuticals.
Amgen's Sensipar with US sales of $1.43 billion in 2018 is a limited competition opportunity for Piramal.
“The model in our case is very different. We work from day one with our partners in terms of identification of the drug,” Vivek Sharma, CEO of Piramal Pharma Solutions told Moneycontrol in a telecon from the US.
“We are a solutions partner. We leverage our contract development and manufacturing (CDMO) capabilities, we work on the R&D and manufacturing of the product, and the partner takes care of distribution,” Sharma said.
Sharma declined to give the details on the number of ANDAs filed by Piramal and its partners but said the company is working on several products.
Out of Piramal's overall revenues of Rs 10,639 crore, pharma constituted around 40 percent or Rs 4,322 crore in FY18. Piramal is trying to reinvent its business after it sold its domestic formulations business to US-based Abbott in 2010 for $3.8 billion.
The company’s pharmaceutical business includes contract development and manufacturing services, critical care and OTC care.
The company doesn't provide a break-up of its services business. But it is estimated CDMO business constitute little over 6-7 percent of Piramal's revenues.
CDMO industry is growing annually at 6-7 percent slightly outpacing the pharmaceutical sector’s growth of 5-6 percent reflecting the ongoing shift toward increased outsourcing of drug development and manufacturing by innovator pharmaceutical companies.
Sharma said the Piramal’s CDMO business is growing above the market growth but declined to give the number.
“We see the business growing. We see large pharma companies outsourcing more and more, and few other large companies consolidating their suppliers, we see more and more meaningful partnerships,” Sharma said.
“All that is reflected in order booking from a broad number of customers, and the expansion of our sites, as a result of market trends that we see. We're actually very excited with the opportunities we see in the space,” Sharma added.
Piramal Pharma Solutions expanded its North American network, acquiring Coldstream Laboratories for injectable capabilities and Ash Stevens for high potency API capabilities.
Apart from this, the company also made a mark in biologics by manufacturing antibody drug conjugates used in targeted therapies in oncology.“There is always scope for growth. All our plants are going through an expansion. We are investing in more capital. We increasing capacities and capabilities, we are always looking to find ways that we can serve our customers better and how we can get new customers," Sharma added.