Indoco Remedies wins major tenders in Germany for Allopurinol tablets

The pharma company on Tuesday announced that it has won major tenders worth Rs 140 crore in Germany including the AOK for Allopurinol tablets.

The expected revenue from Allopurinol tablets business is Rs 70 crore per annum. The supplies to Germany will begin from January 2021 and continue till end of 2022. API consumption will be approximately 100 metric tons per year for this supply, Indoco added.

Indoco manufactures Allopurinol API at its new API manufacturing site at Patalganga. The new API site has a capacity to manufacture 25 tons of Allopurinol per month or 300 tons annually.

Commenting on this development, Aditi Kare Panandikar, MD of Indoco Remedies said, "This is Indoco's first own label product in Europe. Germany is totally tender business and Indoco has won almost 80 - 85% tenders for Allopurinol. This is a tender order for supplies spread over two years and if we are competitive, we may get repeat orders when the tenders are floated after two years. We believe, because of backward integration, we will remain competitive and completely in control of supplies."

The scrip was down 1.81% at Rs 300.85 amid profit selling. The stock advanced 17.26% in the past five sessions to end at Rs 306.40 on Monday (7 December 2020) from its recent closing low of Rs 261.30 on 27 November 2020.

Indoco Remedies is a fully integrated, research-oriented pharma company with presence in 55 countries. On a consolidated basis, the company's net profit jumped 228% to Rs 25.65 crore on a 13% rise in net sales to Rs 323 crore in Q2 September 2020 over Q2 September 2019.

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