Plethico Pharma looks at trimming its CRAMS business
Plethico Pharmaceuticals said it is looking at trimming its Contract Research and Manufacturing Services business.
By PTI |
MUMBAI: Plethico Pharmaceuticals today said it is looking at trimming its Contract Research and Manufacturing Services (CRAMS) business as low margins are being further squeezed out due to higher inflation and surging crude oil prices.
"We will trim our CRAMS business because the margins are getting squeezed out. Many of our CRAMS deals are coming up for renegotiation and if we don't get what we want, we have to trim that vertical," Plethico CFO Sanjay Pai told PTI.
Pai blamed inflation and surging crude oil prices for the margins to fall in CRAMS business. On Friday, inflation touched 11.42 pc and oil touched a high of USD 142 a barrel.
CRAMS is a process of manufacturing medicines for other pharma players.
Piramal Healthcare, formerly Nicholas Piramal, earns 50 pc of its revenue through the CRAMS model. Last year, Wockhardt entered this model.
"We will trim our CRAMS business because the margins are getting squeezed out. Many of our CRAMS deals are coming up for renegotiation and if we don't get what we want, we have to trim that vertical," Plethico CFO Sanjay Pai told PTI.
Pai blamed inflation and surging crude oil prices for the margins to fall in CRAMS business. On Friday, inflation touched 11.42 pc and oil touched a high of USD 142 a barrel.
CRAMS is a process of manufacturing medicines for other pharma players.
Piramal Healthcare, formerly Nicholas Piramal, earns 50 pc of its revenue through the CRAMS model. Last year, Wockhardt entered this model.
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