The acquisition along with capacity expansion and modernisation entails an investment of Rs 30 crore which Lincoln Pharma will fund through internal accruals.
The plant will manufacture Cephalosporin products which is a bactericidal, broad-spectrum, and β-lactam antibiotic originally derived from fungus Acremonium. To be manufactured in tablet, capsule, dry syrup and injectable forms, Cephalosporin is used to treat bacterial infections such as pneumonia, skin infections, ear infection, strep throat, staph infections, tonsillitis, bronchitis and others.
According to Lincoln Pharmaceuticals Ltd.'s managing director Mahendra Patel, the company expects commercial production of the Cephalosporin products by March 2022.
"In the next three years, the facility is expected to contribute sales of around Rs 150 crore from domestic markets as well as exports," said Patel.
The acquired facility in Mehsana, Gujarat has been designed as per the PIC's and European Region. However, Lincoln Pharma is in the process of applying for WHO GMP Certifications for the facility and expects to receive the same by December 2021. Apart from planning to manufacture 20 plus Cephalosporin products, the company is also planning to start product registration soon for the domestic and exports market.
Plans are afoot to manufacture 20 plus Cephalosporin products including Cefalexin Oral Suspension BP, Clavulanate Tablets, Cefixime Capsules, Cefuroxime Axetil Tablets among others. For exports, markets like African, Latin America and Southeast Asia are being explored before expanding to other markets subject to necessary approvals.
Meanwhile, recently, National Company Law Tribunal (NCLT) Ahmedabad Bench approved the scheme of amalgamation of Lincoln Parenteral Ltd and Lincoln Pharmaceuticals Ltd. The amalgamation is expected to bring synergies in terms of operations efficiency, enhance competitive strength, cost-effectiveness and productivity for the combined entity, Patel added.