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Glenmark to set up new injectable plant in US

Business Standard:  February 27, 2015

Mumbai: To strengthen its presence in the US, Mumbai-based pharma major Glenmark Pharmaceuticals is gearing up set up a new injectable facility there. The new manufacturing facility will be added to the plant at Monroe in North Carolina, the construction of which was started in August 2014. The total investment is expected at Rs 160 crore ($26 million). The US is the largest drug market in the world.

On commissioning, the facility is expected to have a capacity to produce 300-400 million tablets and capsules per annum. The newly-proposed injectable unit is expected to have a capacity of 20-25 million vials and pre-filled syringes per annum on commencement of production. The company’s first manufacturing facility in North America is expected to commence production by the end of this year. The facility is spread across 100,000 sq ft plot and has been designed for manufacturing oral solids and injectables.

When contacted, a Glenmark spokesperson confirmed the development but refused to disclose further details. On Thursday, Glenmark shares went down by 2.32 per cent to close at Rs 770.35 on the BSE.

The US business is the largest revenue contributor to Glenmark, accounting for 35 per cent of the company’s FY14 turnover. It achieved sales of close to $350 million (Rs 2,027 crore) in FY14. Glenmark, which operates in North America through its subsidiary, Glenmark Generics Inc, has a generics business with a portfolio of 95 products in segments such as dermatology, hormones, oncology, and modified release products. The company has 74 abbreviated new drugs applications, or ANDAs, pending approval with the US Food and Drug Administration. In FY14, Glenmark’s turnover was Rs 6,000 crore ($1 billion).

In August 2014, the drugmaker had announced its plan to invest $17 million to open its first North American manufacturing site in Monroe. Glenmark plans to employ 40-50 people in the Monroe plant.

Glenmark currently has 14 manufacturing plants in four countries — India, Brazil, Argentina and the Czech Republic.

Large Indian drug makers are expanding the presence in the US injectables space through acquisitions as well as setting up plants. Sun Pharma, the largest Indian drug maker, had acquired US-based Pharmalucence Inc, a sterile injectable player. Pharmalucence, a leading manufacturer of radio-pharmaceuticals, has developed a few injectables indicated for cancer treatment.

Last year, Lupin had announced it would set up two new research and development centres in Florida and Maryland for research in inhalation and complex injectables.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

x IBEF : India Brand Equity Foundation