Profiles in Biotechnology, Standards, Machinery, Innovation, Global Know-how, Strategies, and Expansion - Pharmaceutical Technology

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Profiles in Biotechnology, Standards, Machinery, Innovation, Global Know-how, Strategies, and Expansion

Pharmaceutical Technology

Dishman expanded to the global market by acquiring in 2006 Carbogen-Amcis, a Swiss research company with three production facilities in Switzerland. The acquisition boosted Dishman's contract manufacturing business, allowing it to become the only contract manufacturing organization in India with high-potency manufacturing capability. "The model we are now offering is interesting as there would be one project manager, and absolute seamless development," says Vyas. "If it is a large tonnage product, we also offer our USFDA facilities in India, and can provide the customers with tailor-made development solutions. When an innovator works with someone like Carbogen, up to preclinical Phase I, they will want someone willing to do a very fast job for a few grams. After Phase I, when the biovalidity and the dosage is known, and the customer is deciding the target price for the API, that's when they start looking for the company who can improve upon the process. This is where we come into the picture. In Phase II, cost optimization becomes essential. India is the best location for that, as cost structure is optimal. You can therefore commit many chemists to be able to work this optimization at best. You need hundreds of experiments to find the best routes for your production, and the cost structure here makes it possible under the best conditions."

While looking for additional opportunities in the United States and Europe, Dishman is also venturing into API production in Saudi Arabia and considering options in Africa. Dishman has established a sales presence in Japan as well. "Today, 90% of our business is generated around the world with 10% in the US, but with our acquisition of Carbogen-Amcis, we expect deeper changes," said Vyas.

Local Success Story Turned Global

How Indian companies can become cornerstones in global growth plans

Profile: Matrix Laboratories Limited

Rajiv Malik
Many companies' stories illustrate how the Indian pharmaceutical sector is becoming a key ingredient for global success. Take Matrix Laboratories Limited (Hyderabad), a business venture started in 2001 by a young Hyderabad entrepreneur. In 2006, Matrix was acquired by US generics company Mylan Laboratories Inc. (Canonsburg, PA). The acquisition was a landmark deal for the Indian pharma sector in terms of size ($736 million) and the profiles of both purchased and purchaser. Mylan, one of the five largest generic finished-dosage forms players in the world, was established in 1961, strongly US-focused and had hardly ventured abroad with the exception of manufacturing facilities in Puerto Rico. Matrix, a much younger company, was established with global markets in mind, and quickly managed to sell its high-quality active pharmaceutical ingredients (APIs) around the world.

Since inception, Matrix has posted spectacular growth rates in the Indian pharma industry. It is therefore unsurprising that it recently signed a much-noticed agreement with the Clinton HIV/AIDS Initiative to supply second-line antiretroviral drugs as well as a new, once-a-day pill for AIDS patients. The 2006 acquisition of Matrix has equipped Mylan with a strong vertically-integrated profile, while strengthening Matrix's efforts in the production of finished-dosage forms. As Matrix CEO Rajiv Malik explains, "This was a highly complementary move as we have established our strengths in the API space, whereas Mylan is a strong player in the finished-dosage business and has the lion's share in the US market for more than 50% of their products being marketed to date."

Product Mix Can Be a Plus: Jupiter
The acquisition seems to have given wings to Mylan, which following the success of the Matrix purchase, bought Merck's (Germany) generic business last May. The combined group will have a much stronger global exposure.


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