Eyes 3-fold growth in revenues next financial year
Chennai-based pharmaceuticals company Bafna Pharmaceuticals Limited expects a three-fold growth in revenues to Rs 125 crore in the next financial year from the present Rs 40 crore on the back of its entry into the US market.
“We are in the process of filing ANDAs (abbreviated new drug applications) in the US for anti-retro viral drugs for AIDS,” Bafna Mahaveer Chand, chairman and managing director of the company, told Business Standard. The ANDA is likely to get approved in 18 months and thereafter the company plans to diversify by offering more lifestyle drugs.
This apart, it is looking at exports too boost its revenues. Currently, the revenue from domestic and exports is equally balanced.
The chairman said they would penetrate deeper into the European market and seek approval from the Medicine and Health Regulatory Agency for selling steroids there. It has already acquired six clients in Europe for contract manufacturing and has applied for seven variations.
“Looking ahead contract manufacturing will boost our business. Still, it is necessary for a pharma company to also have brands,” he said.
The company is, therefore, eyeing a shift from generic formulations to branding . “We will introduce our products in Sri Lanka by next year and then take them to other Asian markets where we have a presence before bringing them to India, he said.
At present, it exports non-betalactum products to European markets whereas it is into generic formulations in Asian and African markets.
Meanwhile, the company is planning to ramp up its export-oriented manufacturing facility near Chennai with an investment of Rs 37 crore. Around 25 crore will be invested in expanding the capacity of the 700-million tablets per annum facility by next year and Rs 12 crore in setting up an R&D facility for contract manufacturers by December. “We are looking at a 70:30 ratio between debts and internal accruals,” Bafna said on the funding pattern.