Annual Report - Glenmark

Glenmark Pharmaceuticals Limited
Growth Strategy
In the short time that Glenmark
commenced manufacturing APIs, it has
developed significant strengths. These
comprise:
1. An ability to develop low cost
processes and manufacture quality
generic products that are delivered on
time and at competitive prices in target
markets.
2. A capacity to develop and
manufacture complex multi-step
molecules and build value-added
therapies for higher and sustainable
growth.
3. A capability for deriving economies of
scale.
4. A comprehensive understanding of
global regulatory and IPM requirements.
Over the years, the Company has
strengthened its API presence through a
four-pronged strategy:
1. Exploration of opportunities in the
growing lifestyle segment:
Changing lifestyles and food habits
have given rise to a new set of ailments.
The IPM which has until recently,
focused on acute therapies, has started
shifting towards the chronic segment.
Glenmark has recognised and captured
the growing opportunities offered by
this lifestyle segment across its various
business units.
2. Rapid launch of new molecules:
In recent times, the industry has been
plagued by shorter product life cycles
and declining returns. Glenmark has
countered this by introducing new
molecules with an increasing frequency.
Over the years, new product launches
have contributed to an increasing
proportion of revenues and has also
served to de-risk the business from
being affected by lowering prices across
its existing products.
3. Building strong process research
capabilities:
Glenmark's research centre at Mahape
houses six laboratories dedicated to API
research. Manned by a qualified team of
around 70 scientists and process
chemists, these laboratories are
equipped with state-of-the-art
equipment and analytical tools. This,
coupled with strong, dedicated process
research capabilities, has helped reduce
costs and product development time to
a significant extent.
The research strength has also been
reinforced by a sophisticated
information centre that provides
relevant scientific data, guiding the
efforts in the development of a pipeline
of high opportunity drugs. The research
facilities specialise in stereo chemistry,
heterocyclic chemistry, resolution
chemistry and carbohydrate chemistry.
The research team is currently working
on over 40 projects and has
commercialised 35 products over the
last three years. The Company has filed
patents on processes for thirty nine
products and has also filed thirteen
DMFs in FY 2005. Work on its future
pipeline is progressing at a rapid pace
and the Company expects to file 14
DMFs in FY 2005 and also commercialise
over 10 products in the less regulated
markets in the same time-frame. The
novel drugs [NCEs] being developed by
the Company have also drawn upon the
process skills of the research team for
development and scale-up.
4. Low cost, high quality
manufacturing:
The division has three plants one at
Kurkumbh, a recently acquired plant at
Mohol [near Solapur], both in
Maharashtra, and another at Ankleshwar
[Gujarat]. The Ankleshwar plant was
acquired from GlaxoSmithKline and has
been approved by the USF DA for two
products in FY 2005.
Outlook
The API division expects to drive
revenue growth in FY 2005-06 through
the following initiatives:
Tie-ups and co-marketing initiatives
to increase the target number of
products from 50 to 65.
Development of 14 Drug Master Files
[DMFs] for the US market to further
develop the API and generic
formulation businesses.
Focus on the US market in addition
to those in Asia-Pacific, South America,
Eastern Europe and parts of Western
Europe.
Development of commercial batches
of DMF-grade APIs to supply customers
in North America and Europe for
products already filed till date. At the
same time, develop an additional 14
DMFs for the regulated markets.
Capacity upgrade for the Ankleshwar
and Kurkumbh facilities.
Commence construction of a new
manufacturing facility.
End Note
Glenmark will continue to focus on
strengthening its API operations and
transplanting its experience into the
advanced generic markets of USA and
Europe.
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Annual Report 2004-2005