Shasun Pharma bets big on formulations in regulated markets

Looking at setting up a manufacturing facility for formulations, expansion in API capacity

Shasun Pharmaceuticals is focusing on formulations manufacturing and marketing in the regulated markets, as part of its plan to become an integrated pharmaceutical company. The company is expecting the share of formulations to grow from current 15% of its total revenue to 40% by 2016-17.

It is currently targeting that its transformation towards becoming an integrated global pharma company with focus on the regulated market, to complete in next two years. The company is planning to set up its marketing subsidiary in US.

The company, which has been a manufacturer and supplier of Active Pharmaceutical Ingredients (APIs) and a contract research and manufacturing services (CRAMS) provider, has started efforts to transform into a globally integrated pharmaceutical company focusing from last year.

"The focus today is on formulations and launching formulations which has the API backward integration with our own production," S Abhayakumar, managing director of Shasun Pharma said recently.

"It would take atleast three years to complete the transformation and already one year is over. We will be starting to reap the benefits of the business decisions we have taken recently, after two years," he said.

The company would be launching its subsidiary for marketing in US during the current fiscal year. In Japan also, the company currently has a marketing capability for APIs, but it would be looking at how to go ahead with formulations in the country, he added.

The company would file around 25 Abbreviated New Drug Applications (ANDAs) for formulation drugs and another 10 Drug Master Files (DMFs) for APIs in US during the current year, as part of this. The pipeline is arranged in such a way that in the year 2016-17, the company will have 23 ANDA approvals, from the current 4 approvals, unlocking the value by then, he added.

Similarly, the company is also working to get regulatory approvals for the Japanese markets, which is another lucrative market for the pharmaceutical firms, he added.

Out of the total revenue of the company, almost 15% is currently driven from formulations, which by 2016-17, would become over 40% of the total revenue. The API and CRAMS, together occupies the 76% of the total revenue would come down along with this, he added.

"We are looking at new sites for formulations in any part of the world, for which the location is not finalised. It can be US, or Japan or India itself," he said. It would also have a capacity addition in Naidupetta facility, where it has been planning to manufacture drug intermediates, to cater the API requirements.

The company might not be looking for fund raising, as the Rs 116.5 crore funds infusion from the promoters of Sequent Scientific would be coming in in two tranches within April 2015.

It may be noted that the company has been in the headlines in the recent past for forming a Joint Venture with Sequent Scientific entering into veterinary products segment, transfering its assets to the JV and of late, for acquiring global rights to develop and commercialise Ibuprofen 12 hour extended release OTC tablets, associated technology and global trademark rights of analgesic brand Nuprin, which has been famous in US almost 30 years back and later discontinued. The company would looking at more such acquisitions in future, said Abhaya Kumar.