The Hindu Business Line : Hikal hopes to get European nod for 3 APIs by April

HIKAL Ltd expects European regulatory approvals for three of its APIs (active pharmaceutical ingredients) by April this year, according to its Managing Director and Vice-Chairman, Mr Jai Hiremath.

The APIs/formulations in oncology, nausea and pain management are meant for bulk buyers in France and Germany pending the approvals. The company's Bangalore unit is one of the main bulk drug production centres.

Hikal, a leading contract manufacturer and API supplier, is making its European marketing efforts through its Danish joint venture, Marsing & Co, a pharma marketing and distribution major in Europe. The Mumbai-based drug company picked up 51 per cent stake in Marsing over a year ago.

Meanwhile, Marsing is also in talks with at least six domestic pharma majors to market and distribute their products in Europe, Mr Finn Sondergaard, Managing Director of the Danish company, told a news conference after the Marsing board met here. The products include APIs, hospital injectibles and veterinary medicine.

Marsing also planned to market products in Europe for a subsidiary of the $20-billion Sinochem, in which Hikal recently took a small stake.

The company expected to start delivering significant results for Hikal products beginning mid-2006. "The tough regulatory environment in the European market typically takes 18-24 months for approvals and a couple of our approvals are expected to come through in the early second quarter of this year," he said.

Mr Hiremath, who is also Chairman of Marsing, said the new European marketing front through Marsing would contribute significantly to Hikal's revenues. "I am sure our efforts will start delivering better margins and improve efficiencies by further integrating Hikal and Marsing's efforts," he said.

Hikal was now scouting for R&D acquisitions and not looking any more at buying manufacturing companies, Mr Hiremath said.