Claris preparing for Rs 200 cr of expansion

Claris Life Sciences Ltd, a pharmaceutical major from Ahmedabad, is preparing for the next phase of expansion using bio-technology as the platform. Claris has set itself an investment target of Rs 200 crore for the next phase of expansion which will materialise during 2008 and 2009.

Talking to Business Standard, Sushil Handa, managing director, Claris Life Sciences said the strategy for the next two years will be a combination of the use of new platform and focus on injectable products for regulated markets.

Claris aims at substantial revenue from its global operations during the next few years. The company is hopeful of achieve this with the help of a new platform and a focus on injectable drugs.

At present Claris sees nearly 60 per cent of its revenues coming from global operations which according to Handa is expected to touch 75 per cent to 80 per cent within the next two years. With increasing emphasis on global operations the company is targetting a Rs 1,000 crore turnover during 2008.

During the next phase of expansion, five leading regulated markets of the west, USA, UK, France, Germany and Italy would remain the focus for the company. Among the semi-regulated markets Claris plans to tap Brazil, China, Russia and Mexico.

However, other overseas markets in the Far East like Indonesia will also feature prominently in company's overseas expansion plans for the next two years, said Handa.To create bio-technology product manufacturing facility and even to strengthen the existing facility Claris will invest in six new product line in addition to existing 13 product lines and R&D facility.

To create a niche in the US and other regulated markets which constitute bulk of the revenue for most of the pharmaceutical companies worldwide Claris will also use its technological edge.

Claris has manufacturing facility for multi-layer film delivery system for injectable drugs and it hopes to get substantial impetus in its efforts to penetrate the US market with this new technology.

There are only two US-based manufacturers who have this technology. We hope to get help through this new generation drug delivery system which will effectively counter the widely-used conventional drug delivery systems in the regulated market like US, said Handa.

So far four products of Claris have been approved by USFDA and these products are expected to reach US market by the end of this year. Prior to the launch of four new drugs to create a network in the US market Claris has launched a sodium bicarbonate product for the past two years. The company has filed 18 applications for USFDA approval. It plans to file 20 more in 2008 and another 30 by 2009 and 2010.

Carlyle Group "" a private equity firm which invested $20 million in Claris has put a representative on the board of the company. According to Handa Carlyle's active participation is expected to help company achieve its goal set for the next phase of expansion.