IPCA Labs, the Mumbai-based manufacturer of bulk drugs and formulations, is tying up with Actavis of Iceland, one of the world’s top low-cost producers of medicines. The tie-up would include supply agreement for Atenolol and Metformin, two bulk drugs.
“We are currently working on the modalities with Actavis, and we are close to finishing the formalities,” Prem Godha, managing director, IPCA Labs, said. He, however, did not divulge the size of the deal. The company is also setting up a formulations plant in Sikkim.
Atenolol is a drug for cardiac disorders, and Metformin is used in making drugs for diabetes.
The IPCA Labs clocked sales of Rs 921.24 crore during 2006-07, and posted a net profit of Rs 122.23 crore, according to the company’s annual report. It had a market cap of Rs 1,708 crore after Tuesday’s end of trade.
The tie-up is similar in nature to the IPCA’s earlier tie-up with Ranbaxy Laboratories. IPCA produces and supplies a number of drugs to Ranbaxy as part of the deal, and Ranbaxy markets the finished dosage forms.
The company is looking at acquiring Indian plants to manufacture bulk actives, or substances that form the basic raw material for most drugs.