Bal Pharma bets big on Japan

Bangalore-based Bal Pharma has chalked out aggressive plans to capture the Japanese generics drug market with its anti-histamine (compounds used in anti-allergic drugs) product Ebastine.

"The tradition-bound Japanese market is now opening up. The country, which is the second largest market for pharmaceuticals in the world next only to the US, had till now focussed more on brand-name drugs. However, there will be a major shift in the focus to generic drugs in the coming years.

 

This provides a big opportunity for India's generic players, as Japan believes in the Indian quality," said Shailesh Siroya, managing director, Bal Pharma.

Of the $60 billion Japanese pharmaceutical market, generic drugs constitute only 5-7 per cent at present, whereas they account for about 60 per cent of all prescription drug sales in the West. Now that the Japanese government has started promoting the more affordable generic drugs, especially for those receiving free medical care under the welfare schemes, it is estimated that generics will account for about 20 per cent of its pharmaceutical market in a span of two years.

Siroya said Ebastine's global sales are estimated to be $350 million, of which Japan accounts for around $100 million. Ebastine is coming off patent by next year, and "this is where we stand to gain", he added.

Bal Pharma already has a distribution network for its bulk drug products Ebastine and Gliclazide (anti-diabetic) in Japan. The company has also obtained approval for these products from the Japanese DMF (drug master file).

"Of the more than $100 million Japanese market for Ebastine formulations, Bal Pharma aims to capture $1 million by next year through the supply of raw materials. We will strengthen our existing distribution network to boost sales in that country," he said.

Bal Pharma is one of the very few companies in India who manufacture active pharmaceutical ingredients (API) for Ebastine. It has two plants in Bangalore and one in Pune and has recently set up a new facility in Uttaranchal.

The new plant will cater mainly to the company's sales in Japan and the US. With Rs 76 crore turnover last fiscal, Bal Pharma aims to be a Rs 100-crore firm in a couple of years, mainly through growth in the international markets. and branded formulations, Siroya said.