Pharma takes out-sourcing route

PUNE: The pharma sector is now witnessing the out-sourcing action of the IT sector.
Emcure Pharmaceuticals Ltd, which inaugurated its new plant with capacities to manufacture 3-5 billion tables annually on a single shift, is eyeing global markets, including the regulated ones of the US and Europe.
The Pune-based pharma manufacturer is eyeing the strategic alliance route to achieve its aims.Recently, it signed an alliance with the Iceland pharma major, Actavis Group hf, under which the European major will transfer some technology here, Emcure will develop some of its own and some could be developed jointly. Actavis is a Euro 600 million generics manufacturer with strength in Europe and a network in the US.
"The technology they could transfer to us will be across the therapeutic segments, where they are very strong. These could be cardio-vascular and statins but it is still to be identified. The joint work is mainly in filing of ANDAs in the US which will be based either on their own technology or we could develop the technology. But all manufacturing will be done here," Mukund Ranade, vice president (development) Emcure, said.
The Emcure plant is already certified to UK standards and a US FDA team is expected to visit it in the next few months. Once the plant is certified, commercial production for the regulated markets will begin.
"We are in talks with other large European and US generics manufacturers for similar strategic alliances. This is the model we want to take forward," Mr Ranade said.
While Actavis is expected to move some of its existing manufacturing to India to the Emcure facility, this is still to be finalised. This is a sensitive issue since it could lead to some job losses at existing plants. However, such site transfers will be done since the process of filing ANDAs in the US has a long gestation period.
"This is a multi-million dollar business opportunity," Mr Ranade said.
Emcure is set to begin manufacture of bio tech products at its new plant. It has successfully launched the chirally pure drugs including S-Amlodipine for which it has obtained US process patent.