Ipca In Talks With Merck On Intermediates Supply

Ipca Labs is in talks with the US-based Merck & Co, the world's largest pharmaceutical company, for exploring the possibility of supplying drug intermediates to the company. When contacted, Premchand Godha, managing director, Ipca, said: "We have sent them samples but don't know if it will result in Merck sourcing part of its requirements from us." However, according to reliable industry sources, Merck is exploring the possibility of sourcing intermediates from India.

Merck recently tipped Glaxo to become the largest pharma company with global sales of $ 11.30 billion and a market share of 4.6 per cent.

If the deal materialises, Ipca will supply the intermediates and bulk drugs from its facilities at Ratlam and Indore in Madhya Pradesh.The company currently exports 14 per cent of its production to the US.

Ipca already supplies bulk drugs and intermediates to Teva of Israel, Sintofarm of Italy and Hoechst Celanese of the US. It also supplies atenolol tablets to Tillomed Labs of the UK, and makes several formulations for SmithKline Beecham Plc's requirements in India and neighbouring countries.

Meanwhile, Ipca will also become the first Indian company to manufacture bulk artimether, a natural product used in making anti-malarial formulations. "We will manufacture the bulk drug.and market the formulation in the form of tablets and injectables," said Godha.

Currently, Rhone-Poulenc is the only company marketing the same formulation under the brand name of 'Paluther'. While Rhone-Poulenc presently sources the bulk from China, there is a possibility of the company entering into a sourcing arrangement with Ipca Labs in the future, say industry sources. Godha, however, said that it was too premature to comment on the issue.

Ten per cent of Ipca's turnover in 1998-99 will come from the largest-selling anti-malarial brand, Lariago. There are plans to launch two more anti-malarial drugs, Larither and Cinkona. "While Larither is the artimether-based drug, Cinkona is a quinine-based formulation," he said.