TASC Pharmaceuticals, which makes active pharmaceutical ingredients (APIs), is to merge with fellow Indian company Glenmark Laboratories, a specialist in formulations and biological drugs.
The 12bn rupee (€205m) merger will create a company that can produce bulk drugs across the chemical and biological sectors, as well as finished dosage forms. The new group will be focus on exports and target niche therapeutic segments, biopharmaceuticals, drug discovery and development support services and custom research and manufacturing services, according to Glenmark's managing director, Mark Saldanha, who will hold the same position in the new company.
He told The Hindu newspaper that Glenmark has a formulation plant in Goa built to US Food and Drug Administration (FDA) guidelines and that, once validated and approved, exports to the US would be 'significant'.
The combined company, which has not yet been named, will have revenues of 5.9 billion rupees and profit of more than 900 millions rupees in the financial year ending 31 March, 2006, according to the two firms. The marriage is expected to conclude in two months.
New API plant for Dishman
In other Indian news, Dishman Pharmaceuticals and Chemicals has said it is setting up a new API plant with six production lines at a cost of 500m rupees.
The company has also earmarked another 200m rupees to set up a new R&D facility at its Bavla facility in Gujarat. The new plant should be on line by the last quarter of 2005-2006 while the laboratory will be ready by May. The R&D facility will have a 100m rupee pilot manufacturing plant.
Dishman already makes APIs for three multinational drug companies, including Solvay, and the firm expects to have long-term manufacturing contracts with at least eight companies by the time the plant comes on-stream.