Dr.Datsons Labs Ltd

Dr.Datsons Labs Ltd plans 

Rs. 250 cr.Expansion plans

BSE listed Dr.Datsons Labs Ltd, a research-focused pharmaceuticals company, manufactures active pharmaceutical ingredients (APIs) and finished dosage forms and provides contract research and manufacturing service & focuses on five niche business areas — anti-malaria, multi-therapeutic lozenges, oncology products, HIV products and codeine-based cough syrups has chalked out major expansion plans. The market leader in the anti-malarial API segment, it is present in 61 countries

“We are in talks with a couple of merchant bankers for a possible sale. At the same time, we are also evaluating other options, including investments into the company, to meet our proposed capital expenditure plan for expansion projects. By next week, we will be finalising the name of the merchant banker for a possible stake sale,” said DTL Vice-chairman Kannan Vishwanath.

Promoters hold about 40 per cent stake in DTL. In the quarter ended March, foreign portfolio investors, including Davos International Fund, Leman Diversified Fund, Stream Value Fund and Kuvera Fund, acquired 9.35 per cent in DTL from various domestic individual and institutional investors.

During the March quarter, Videocon, through its subsidiaries, had increased its stake in DTL to 19 per cent. In the previous quarter, it held nine per cent stake.

“We are looking for capital investment at least of Rs 250 crore for our proposed expansion in Mahad and Pune. We have already applied for 17 patents of anti-cancer drugs, for which plants and machinery are already in place. With the new investments, we will commence production on these plants,” said Vishwanath. “Through fresh capital infusion, we want to ramp up our presence in developed regions, including Europe and the US.”

Around 80 per cent of new drugs are brought to market by the big global majors, even though only 35 per cent of these have been developed by them from the earliest stage. Smaller companies engaged in research often find going the full course up to the market beyond their means and end up out-licensing their NCEs to the big pharmas. India, the country most affected by malaria in the South East Asian region, is projected to see a decrease of 50-75 per cent in malaria case incidence by 2015, a report by the World Health Organization said. The WHO’s World Malaria Report 2012 said a concerted effort by endemic countries, donors and global malaria partners during the past decade has led to strengthened malaria control around the world. It however warned that a significant slowdown in global funding. Mumbai-based Dr. Datsons Labs Ltd having a significant presence in this segment is the world’s third-largest manufacturer of quinine salts and the second-largest in India. Only nine companies globally manufacture quinine salts. Dr. Datsons Labs Ltd is only the second company to receive WHO for its anti-malarial APIs and formulations. Its dosage regimen is just one tablet for three days, while other drugs have to be taken twice or four times a day for three or more days.. Cipla is also a leading player in this market. Dr. Datsons Labs Ltd which is a leading supplier to most of the Indian Companies With a significant market presence with manufacturing and marketing capabilities in APIs (Active Pharmaceutical Ingredients) with focus on anti-malarial, and finished dosage forms (FDFs) , Dr. Datsons Labs Ltd could fetch a bigger fortune as anti-malarial drugs market in india is growing at ~25% & Anti-malarial market size in India is estimated at Rs 3000 crore. The Company is yet to enter into domestic branded formulation market, though it has plans to start the fiercely competitive Indian market operation by early 2013.