Usha Sharma – Mumbai
Ahmedabad-based Intas Pharmaceuticals has chalked out its expansion plans post the upcoming initial public offering (IPO) worth Rs 225 crores. The company will mainly focus on strengthening its presence in the European market and invest Rs 122 crores for obtaining marketing authorisations.
Recently, Intas Pharmaceuticals has filed a draft red herring prospectus (DRHP) with SEBI for the IPO. Jayesh Shah, Chief Financial Officer, Intas Pharmaceuticals shared the company’s corporate plans and provided the break up of the IPO amount and commented, “From the IPO, we shall be able to raise Rs 225 crores, and plan to invest Rs 122 crores in obtaining marketing authorisations in Europe, Rs 68 crores for setting up a new research and development (R&D) facility in Ahmedabad and the balance amount of Rs 35 crores will be spend for corporate purposes and other expenses.” The company has 40 new molecules at different stages of completion. These molecules are targeted for registration in various countries in Europe. It has molecule for oncology (11), cardiac (10), pain management (3), CNS (3), gastro intestinal (3), anaesthesia (2), anti infective (2), dermatology (2), anti parasite (1), gynaecology (1), and two molecules for other therapeutic areas.
Commenting on strengthening the company’s presence in the European market, Shah said, “For the European market, we have 40 molecules for different therapeutic areas registered in various countries. In 2014-15, we will invest Rs 81.5 crores and in 2015-16 we plan to invest Rs 40.5 crores.”
As mentioned, Intas Pharma will invest Rs 68 crores for setting up the new R&D centre. The company will invest Rs 47 crores for the plant and machinery, Rs 17 crores for civil work and Rs 4 crores for other works in order to set up the R&D centre. While speaking about the new R&D centre, Shah said, “Considering the consistent growth of more than 25 per cent compounded annual growth rate (CAGR) since the last six years, we felt the need to establish a dedicated R&D centre to maintaining the future pace of growth. The new R&D centre will be established at the existing site of manufacturing facility.” Recently, Intas Pharma and its wholly-owned subsidiary Accord Healthcare entered into a settlement and license agreement with Hoffmann-La Roche Inc. Commenting on the recent settlement, Shah highlighted, “The recent settlement and licensing agreement with Roche will enable the company to launch the product ahead of its exclusivity period which presents an upside for the company which is market size of the product being in excess of $ 0.7 billion.”
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