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| Edited By: Priyanka Golikeri |Source: DNA |Updated: Mar 18, 2018, 03:52 AM IST
Indoco Remedies, the Rs550 crore drugmaker, is optimistic about reaching a turnover of Rs1,000 crore by fiscal 2014.
“And of this Rs1,000 crore, the contribution of both domestic and international business will be equal,” said Aditi Kare Panandikar, executive director - business development and HR.
Currently, about 65% of the company’s turnover comes from domestic side. The company hopes to scale up its international business by focusing extensively on its deals with international drugmakers like Watson and Aspen and through its own product filings.
The company has a product development alliance with US-based Watson Pharma to develop and manufacture sterile products for the US market, under which Indoco will develop, manufacture and supply the products to Watson.
Indoco also has an out-licensing agreement with South Africa-based Aspen, under which former will supply 7 eyecare products, and the latter will market and distribute them in 30 countries including those in Latin America, Africa, China and Brazil.
Panandikar said the relationship with Aspen is getting stronger with the signing of an agreement with Aspen Australia for the manufacture of 8 products followed by one more deal for an oral dosage form (for diabetes medicine metformin) for Brazil.
“The orders from Aspen Australia have started flowing in and this will result in good revenue flow in the future. These deals, including the one with Watson, are long-term strategies and we are confident they will turn around in the next few years,” said Panandikar.
The company also has an agreement with US-based Ingenus Pharma for an anti-gout product, under which Indoco will develop and file the application and Ingenus will market the product in the US. Indoco will get milestone payments at various stages of development and filing.
According to Ranjit Kapadia, vice president, institutional research, HDFC Securities, if products are lucrative with minuscule competition, the company could get major upsides, through its deals with Aspen and Watson.
“Such tie-ups save upon a company’s time, energy, money in establishing a presence for itself in a new geography and are an easy way of enhancing global presence for companies with not much marketing muscle,” said Kapadia.
