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In a boost to its contract manufacturing business, Piramal Enterprises has invested $55 million (around Rs 360 crore ) to upgrade its active pharmaceutical ingredient manufacturing plants in India and the US.
Healthcare is the largest segment of the company and contributed to around 47 per cent of the company's FY 17 revenue of Rs 8,547 crore. Within healthcare, contract manufacturing is the largest division accounting for 60 per cent of the segment revenue in last fiscal.
The contract manufacturing business supports clinical trials and drug development of other companies. It has five manufacturing sites in India, the US and Europe.
A part of the investment will go into a new state of art multi-purpose plants to support the current pipeline of around 80 late-stage programmes that the company is currently assisting its partners. The investment has been made through group company Piramal Pharma Solutions.
Upgrades will include creation of early development capabilities, addition of GMP kilo labs and a pilot plant in India. The plant in Morpeth, UK too will undergo upgrade. Support functions such as analytical capabilities, R&D infrastructure, automation and IT systems will also be expanded at all API sites through this investment.
Vivek Sharma, CEO, Piramal Pharma Solutions said " We are committed to investing in our customer needs. With these investments, we can now support the commercialisation of our pipeline of over 80 programmes that are at phase II or beyond while allowing us additional capacity for future partnerships."
In the last two years the company acquired two contract manufacturing organisations in the US engaged in development of sterile injectables and high potency anti-cancer agents to grow its business.