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Dishman plans new plants to “bridge gap” with larger rivals

07-Apr-2010

Related topics: Contract services (outsourcing), Ingredients, excipients and raw materials

Indian CMO Dishman Pharmaceuticals and Chemicals will invest around INR1bn (€16.7m) to build four new manufacturing facilities near its existing production sites in Ahmedabad.

According to a number of media reports, Dishman plans to raise a significant proportion of the funds, around INR750m, through the sale of convertible bonds on the Indian exchange next month.

Managing director JR Vyas told Bloomberg that additional capacity is part of an effort to “seeking to boost output and contracts to help it bridge the gap with larger rivals.”

He explained that while the Indian contract manufacturing organisation (CMO) has a strong order book, it is “in talks with four multinational companies and five emerging mid- sized pharma companies.”