Mumbai: Chandigarh-based Parabolic Drugs plans to launch five new molecules by end-April and is working on 20 new molecules in women’s health, diabetes and hypertension segments, a senior official said on Tuesday.
“We have set up a new manufacturing unit in Punjab, which should start commercial operations in April,” co-founder and director, Vineet Gupta, told Reuters in an interview.
The active pharmaceutical ingredients (APIs) maker has invested about Rs750 million in the new unit and sees it adding Rs100-150 crore in sales in the next fiscal, he said.
“We have given a sales projection of Rs905 crore (Rs9.05 billion) for FY12, but we plan to revise it upwardly as the new plant is ready,” he said.
The company has started client acquisition in the US and other markets it plans to serve through the new plant, he added.
Parabolic Drugs, which currently makes 44 APIs, had raised Rs200 crore via a 26.6-million-share initial public offer in June last year.
Exports Drive Growth
Awaiting a US FDA approval for one of its plants in FY12, Parabolic Drugs sees exports share in sales rising to 60% in two years from present 40%, Gupta said.
“Our cephalosporins plant has EU (European Union) approval and the US approval is awaited. Once this happens, exports share to regulated markets (alone) would rise to 70%, which is about 32% now,” he said.
Other than Europe, the company sells APIs to formulation makers in Africa, Gulf, Latin America and South East Asia.
The firm has started work on a Rs470 million manufacturing unit at Panchkula in the northern Himachal Pradesh state, to enter the Contract Research and Manufacturing Services (CRAMS) segment.
“The unit should be ready only in the year 2012 and the sales from this would initially form a very small portion of the overall business.”
It sees CRAMS segment generating about 1.8% to 2% of total sales in FY12, it said in a presentation.
“The CRAMS segment was not growing over the last two-three years due to the global turmoil. We believe, the situation will change henceforth as a lot of multi-nationals have increased their R&D spend,” he said.
Shares of Parabolic Drugs closed at Rs43.85 on Tuesday, down 7.97% in a weak Mumbai market.