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| Claris talking to 3 more pharma majors for Pfizer-type deal |
| P B Jayakumar / Mumbai Jan 27, 2010, 00:31 IST |
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Mulls IPO for expansion, plans two more factories.
Claris Life Sciences, which recently entered into a drug supply pact with the largest global drug maker, Pfizer Inc, is in discussions with three other big companies for similar deals.
The Ahmedabad-based Claris may be able to conclude one or two deals within two to three months, Arjun Handa, managing director and chief executive, told Business Standard.
“The discussions are for various geographies and we hope such contract manufacturing and licensing deals will contribute to about 30 per cent of our turnover within the next two years. We have done over 1,400 registrations for products in 76 countries,” he said.
The Rs 750-crore company is one of the rare generic drug companies focusing exclusively on injectable drugs. It has sent its first shipment to Pfizer and is looking at expanding the scope of the deal, said Handa.
Claris and Pfizer had entered into a deal in May last year for supply of sterile injectable drugs that are off-patent and have lost exclusivity in the US, Canada, Australia, New Zealand and Europe. The pact was to supply a dozen generic injectables for 15 years. Pfizer had also entered into long-term generic drug sourcing pacts with Aurobindo and Strides Arcolab. Dr Reddy’s entered into a similar deal with GlaxoSmithkline, the second largest drug maker in the world.
A dwindling pipeline of new drugs and present ones losing patent protection have forced big pharma companies to take up generic drug-selling, which they had shunned earlier.
Claris has strength in segments like anesthesia, anti-infection, renal care and clinical nutrition, with a total basket of 75 molecules. Their 200-member research and development division is also developing specialised injectable generic drugs for oncology.
The company is developing another 40 products, mainly targeted at the US market. The current niche product basket of the company addresses a $14-15 billion market, with not many competitors, said Handa.
To meet the growing demand, Claris plans to expand its manufacturing capacity by setting up two new units adjacent to the three plants at its campus in Ahmedabad. This will entail an investment of close to Rs 200 crore and will be funded through internal accruals and debt.
“We will soon unveil an aggressive strategy for growth and depending on the fund requirements, we may go for an initial public offer or other fund-raising options,” said Handa, a 31-year-old commerce graduate and management degree holder from the US. He is the eldest son of Claris’ founder, Sushil Handa, a serial entrepreneur who now runs an ‘Entrepreneur Club’ to give tips to youngsters on developing new businesses.
Private equity firm Carlyle had invested Rs 90 crore in Claris in 2006 for a 13.8 per cent stake. The remaining equity is with the Handa family.
Arjun Handa said the company had grown at over 20 per cent for the past few years and the new deals will help it catapult to a higher trajectory.
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