Dishman In Pact With European MNC For Cardiac Drug
Dishman In Pact With European MNC For Cardiac Drug [The Economic Times, India]
From Economic Times (India) (December 27, 2010)
Dec. 26--AHMEDABAD, India -- Ahmedabad-based Dishman Pharmaceuticals will manufacture cardiac drug ingredients for a European multinational under a $50-million deal.
The yet-to-be launched heart ailments medicine is expected to generate $2 billion revenues annually and is viewed as a potential blockbuster, a pharma executive close to the development said. Any drug which brings in $1 billion per year qualifies as a blockbuster drug as per the pharma industry benchmarks. Pfizer’s Lipitor is the world best selling cardiac drug with $12 billion sales.
The source refused to divulge name of the European company citing regulatory restrictions but confirmed that Dishman was among the two companies in the world to supply the intermediaries. "The deal is very sensitive in nature as the supply is for a drug that is yet to be launched in the global market," he said.
The Contract Research and Manufacturing Services or CRAMS company has agreed to supply the drug for five years. Two months ago Dishman struck a $40 million supply deal with Abbott & Merck. The latest European MNC deal will fetch the company $10 million in the initial phase.
Sharekhan’s pharma analyst Sapna Zawar says the deal is important for Dishman as its CRAMS business was under pressure in the first half of financial year 2010-11. During the second quarter profits were down 55 percent and Dishman’s Swiss-based Carbogen too was reeling under losses. She said, fresh revenue flow was likely in the fourth quarter of 2010-11 and the first quarter of FY2011-12 Rs
The 1,000-crore Dishman spent . 150 crore in this financial year on new and existing facilities.
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Posted: December 2010