N. R. Munjal, Vice-Chairman cum Managing Director, Ind Swift Laboratories Ltd

“We have over 20 products in pipeline which are from the different therapeutic segments.”

Apr 17, 2012 03:04 IST India Infoline News Service

N. R. Munjal, Vice-Chairman cum Managing Director, Ind Swift Laboratories Ltd is Vice Chairman of Pharmaceuticals Export Promotion Council which is a statutory body set up for promoting the Exports of Indian Pharmaceutical Industries. N R Munjal is Vice President (NORTH) for two consecutive tenures of Bulk Drugs Manufacturers Association, a autonomous body set up to deal with the day-to-day affairs of its members with different Government agencies.

Ind-Swift Laboratories limited (ISLL) is a leading global player in Active Pharmaceutical Ingredients and Advanced intermediates.  ISLL, with a clear focus on positioning itself as a primary supplier of specialized APIs to regulated markets, hitherto focused on unregulated / soft regulated markets, ISLL has been steadily building a platform for a foray into regulated markets.

ISLL has undertaken various Globalization initiatives by entering in regulated markets (US, Europe, Japan, Australia and Canada), registering its blockbusters products in various non-regulated and soft regulated countries, filing DMFs, investing heavily in R&D, developing its IPR cell and upgrading manufacturing facilities with increased capacities to cater to the increased global Demand for the Company’s products.

Replying to Yash Ved of IIFL, “We have over 20 products in pipeline which are from the different therapeutic segments.” 
What is your overview on the Pharma industry?

Over the last three decades, the Indian Pharmaceutical Industry has transformed into a world leader in the production of high quality generic drugs.

The Sector is: 

  • Highly fragmented with market with severe price competition and government price control.

  • Has more than 20000 registered units meets around 70% of the country’s demand for bulk drugs, bulk intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and injectables. 

  • Has 250 large units and about 8000 Small Scale Units, produce the complete range of pharmaceutical formulations, indigenously.

  • Has doubled its market size since 2005 and is expected to reach US $ 20bn by 2015, growing at a compound annual growth rate (CAGR) of 11.7 % during 2005-15 and establish its presence among the world leading 10 markets.

  • Occupies 3rd position in terms of volume and 14th in terms of value

In terms of exports of Drugs, Pharmaceuticals & fine chemicals, it stood at US$10.3bn during the year 2010-11 with a yoy growth of 15.1%.

Finished generics supplied from Indian accounts for 20% of the global generic markets. UN estimates that 70% of the patients belonging to 87 developing countries received medicines procured from India by the UNICEF, IDA and the Global Fund and the Clinton Foundation.

What is the product pipeline under development?

We have over 20 products in pipeline which are from the different therapeutic segments.

These products will be launched upon their patent expiry. 

How is your US and Europe market doing?

US and Europe market is doing great where we are on an average getting more than 25-30% growth annually. We expect the US markets to contribute more to the sales in next two to three years as more products goes of patent in US.

Are you planning to expand regions globally?

In 2011, we expanded our marketing network to Japan and Russia.

Japan is a highly regulated market as we got the initial success in the form of approval of our manufacturing facilities by the PMDA, the Japanese FDA. We have started supplying the commercial quantities of our molecules to the Japan Market.

Brief us about your manufacturing facilities? How much investment goes into R&D?

Our manufacturing facilities are located at two different locations one is in Derabassi (Punjab) and the other is in Jammu, J&K. The Derabassi facility is accredited by all key accreditation agencies like USFDA,TGA, MHRA, KFDA, PMDA etc. and it is spread over 37 acres of land . There are in all 19 blocks with manufacturing capacity of 370 KL. This also includes the containment facility to manufacture the high potency cancer drugs.

Comment on your capex plans?

We contemplate a capex of Rs. 1.80bn in next 18 months to meet the timeline for commercial supplies of the molecules going off patent in next 3-4 years. 

Are you planning any acquisitions?

We are not looking at it at present but we may go in for the same if a suitable proposal which would add synergy to the existing business model of the company comes to us. 

Brief us about your financials?

The company recorded a profit after tax (PAT) of Rs 284.4mn in the third-quarter ended December 31, 2011 (Q3 FY 12), a healthy 15.52% jump from Rs 246.2mn in the year-ago period (Q3 FY 11).

The company’s total revenue in Q3 FY 12 has increased 15.7% to Rs 3.58bn as against Rs 3.10bn in the year-ago period.

Its EBITDA also showed a robust 22.44% growth in Q3 FY 12 at Rs 638.8mn as compared to Rs 521.7mn in the same period of the previous fiscal.

What is your message to shareholders?

We expect to grow at an average rate of 25-30% over the next three to four years. 
We expect the shareholders wealth also to grow with the growth in the Company.

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