Indoco buys La NovaChem unit

MUMBAI: Indoco Remedies, a Rs 215-crore Mumbai-based pharmaceutical company, has acquired La NovaChem’s active pharmaceutical ingredient (API) manufacturing facility located at Patalganga, Maharashtra.

According to a company statement, Indoco has bought the shares of La NovaChem, the company that owns the facility for an undisclosed amount.

“The acquisition of La NovaChem’s API facility and the recent commissioning of the API-focused R&D facility would hasten Indoco’s strategy of backward integration and targeting of regulated markets of the US and Europe.

It will also help Indoco build its strong presence in API markets, both in India and abroad,” Suresh Kare, chairman and managing director, Indoco Remedies said.

The acquired manufacturing facility is built on the US FDA standards and Indoco will apply for an approval shortly. Indoco is also looking to expand its business in other regions especially the regulated markets of the US and Europe.

The company is looking at filing seven ANDA’s by December ’06, where the aggregate market size of the products is $1.1bn.

The acquisition La NovaChem facility is a step by the company to build its in-house API manufacturing capability both for the domestic as well as exports business.

Recently, Indoco commissioned its newly set-up R&D centre at Rabale near Thane, which primarily targets API synthesis and development, and is also equipped with a kilo-lab facility. Indoco shares rose 1.77% to Rs 249.85 in rain-hit trade on Tuesday.