Zenotech plans marketing pact with Ranbaxy

HYDERABAD: Generic biopharmaceuticals maker Zenotech Laboratories is looking to nearly treble its turnover during the current fiscal from the Rs 5.6 crore previously.

 

The quantum jump in revenues will come through a mix of marketing pacts and increase in volumes through capacity additions for which the company will invest upwards of Rs 50 crore over the next 18 months, chairman and managing director, Jay Chigurupati said.

 

The new investments will go towards setting up a new 40,000 sq ft oncology formulations facility apart from a bulk facility over the next one year. Zenotech has already operationalised a 1.1 lakh sq ft biologics manufacturing unit conforming to US FDA norms, which according to Dr Jay, is just the second such unit after Wockhardt.

 

According to industry sources, the company is also on the verge of sealing a global pact with pharma major Ranbaxy for marketing its select biotech oncology products while it has already entered into an alliance with a leading US-based company to roll out is biotech products in the regulated US and Canadian markets.

 

This apart, Zenotech is also seeking to achieve a global footprint on its own through its BRIMS (Brazil, Russia, India, Mexico and South Africa) strategy during the year, with marketing presence being established in Brazil and Vietnam.

 

Though confirming the talks with Ranbaxy, Dr Jay refused to divulge the specifics of the agreement.

 

However, sources say the relationship between the two is likely to be through a non-exclusive agreement that will allow both the companies to tap common markets, significantly in the US and EU.
The announcement could come as soon as later this month or early January, they added.

 

Zenotech has lined up a range of biotech products that include the country’s first recombinant human granulocyte macrophare-colny stimulating factor (GMCSF), which is likely to be launched by March 2006.
Another oncology injectable formulation, the GCSF, which stimulates the production of white blood cells, accelerating recovery during cancer treatment, will also be launched in March.

 

Inerleukin-2 (IL), another oncology bio-pharmaceutical that stimulates the growth of T-cell response, and can be used in immunotherapy for cancer, is set to follow in September 2006. All the products are currently undergoing phase III clinical trials. 
 
According to industry estimates the bio-generics markets in Europe and the US alone have the potential to generate sales of over $16 billion by 2011 at an average growth rate of 69%.
 
Zenotech’s focus has been on high-margin, high-value chain products, Dr Jay explained. While the margins on bio-generic injectibles works out to 25%, the margins on orals and other segments of the markets range around 17%, he said.

 

 

Company plans to set up an oncology formulations facility

 

Has set up a biologics manufacturing unit as per US FDA norms