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Diabetes drug major USV eyes niche therapies abroad, targets Rs 50 bn sales

It would have a Rs 30 bn turnover this financial year; 80% of its revenue comes from domestic market

Aneesh Phadnis  |  Mumbai 

Diabetes drug major USV eyes niche therapies abroad, targets Rs 50 bn sales

USV, the country's largest manufacturer of oral anti-drugs, is stepping up focus on and niche low-competition products in Europe and the US, as it looks for new growth opportunities to achieve Rs 50 billion (Rs 5,000 crore) revenue in the next five years. It would have an estimated Rs 30 billion (Rs 3,000 crore) turnover for the current financial year. Privately-held earns around 80 per cent of its revenue from domestic market. Of this, about 40 per cent comes from portfolio which includes top selling Glycomet GP, India's third most valued drug brand at Rs 4 billion (Rs 400 crore) annual sales. is another key segment. These two therapies contribute 80 per cent to its domestic business. Last month the accepted for review USV's application for biosimilar Pegfilgrastim, which is a copy of Amgen's $4 billion The company is also participating in public health tenders in Germany while in the US its focus is on niche low competition products. “In the US market we do about $25 million of net sales. So that will grow since we have two three important products. We will take to the US as well,” said Prashant Tewari, managing director of Diabetes drug major USV eyes niche therapies abroad, targets Rs 50 bn sales Mumbai based company promoted by began manufacturing in India in 1960 as a joint venture with the US based drug maker US Vitamins & Pharmaceuticals Inc. In 1986 the Gandhi family took full control of the company following the exit of its American partner. Leena Gandhi Tewari, grand daughter of its founder promoter is company's chairman. made a foray in drugs from its early days and this first-mover advantage has allowed the company to establish a leadership position in the Rs 80 billion oral drugs segment ahead of larger including Sun Pharmaceutical Industries, MSD, Novartis, and others.

But now the company is looking for growth beyond its core segments to de-risk its sales and improve profit. "We started early and remained focused," Tewari said. The company's legacy drugs still continue to drive growth. "These legacy drugs gave us 9-10 per cent unit growth. That's a solid growth as volumes are large," Tewari said. Along with its legacy products the company's portfolio also includes proprietary drugs like which it sells under licence from Company is targeting the new growth areas to further accelerate its growth for achieving Rs 50 billion (Rs 5,000 crore) revenue target in the next five years. With these efforts, Tewari expects share of its overseas business to grow to 25 per cent in the next five years from current 20 per cent. But much of the growth will be dependent on regulatory compliance and approval for biosimilar drugs which is developing for European and US markets. Last March the US Food and Drug Administration (USFDA) slapped a warning letter on the company's Daman plant for good manufacturing practices violations. “Remediation has been done from our side. We had re-inspection, and in our view it was very good. Now we are awaiting a feedback. We have 24 abbreviated new drug applications (ANDAs) filed in the US and seven are approved which are only awaiting facility clearance,” he said. Tewari said all the research and development expenses are being funded through internal accruals and the company had no share sale plans.

First Published: Sat, January 27 2018. 20:55 IST