The Hyderabad-based company, which recently received a Rs 40 crore investment from drug-major Ranbaxy for a 14.9% stake, specialises in making of formulations and APIs based on organic and peptide chemistry.
GOA: Jupiter Bioscience, the maker of specialised organic compounds, is all set to break into the difficult Japanese market with top four drug-makers in that country seeking to source peptide building blocks and chirals from the company.
The Hyderabad-based company, which recently received a Rs 40 crore investment from drug-major Ranbaxy for a 14.9% stake, specialises in making of formulations and APIs based on organic and peptide chemistry. It has just closed a Rs 100 crore qualified institutional buyer (QIB) placement with some US, European and Far Eastern funds which will be used to finance its aggressive plans for a significant market share.
The company is targeting at least 25% of the $1 billion global generic peptides market and roughly 50% of the $1.5 billion chiral intermediates market over the next 2-3 years and has put in place a strategy of alliances, strategic investments and plans for strategic boutique acquisitions of process platforms in place.
While the overall peptides market is estimated to be around $10 billion by 2010, the generics market alone, which is growing at a CAGR of 10-15%, is expected to be around $4 billion bin 3-4 years. The US is the largest market followed by Japan where Jupiter is looking to corner 20-30% of the share, Venkat R Kalavakolanu, CMD, said.
The company is also talking to a Japanese company that wants to outsource making of chiral products, he told DNA Money on the sidelines of the ongoing Frost & Sullivan Global Partnership Summit in Goa on Tuesday. While the Ranbaxy investment will be leveraged to capture 20-25% of the global peptide pharmaceuticals market in regulated countries that will be services from its upcoming US plant.
The $5 million plant at Marayland, which will be ready by September this year, will be used to service the regulated markets, while the facilities in India will be used to sell in the unregulated markets. At the same time is also engaged in talks for acquisition of a process platform IP which will enable the company to scale up its processes much faster.
Further, it is also in talks with three discovery companies for supply of peptides which could be followed by an in-licensing deal two years from the signing of the deal, Kalavakolanu added.
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