Indian contract manufacturer matures

By Kirsty Barnes

- Last updated on GMT

Related tags: Pharmacology, Mergers and acquisitions, Patent

Indian chemicals firm Syschem has decided to move from being just a
contract manufacturer to making and selling its own its own active
pharmaceutical ingredients (APIs) & intermediates.

The move was spurred on by the company's desire to capitalise on the booming pharmaceutical industry in India. The company said it plans to start by making three of its own molecules from "the leading therapeutic categories"​ and is looking to increase its manufacturing capacities in order to cope with expected domestic demand. The company is one of a number of Indian companies that are starting with basic chemistry offerings and gradually developing and expanding their business into other areas with a view to becoming global pharma industry players, utilising both organic growth as well as mergers and acquisitions as they seek to boost their presence in existing markets and open up new ones. Syschem, having built up strong process chemistry skills, which has helped it develop complex processes for APIs and intermediates that do not infringe currently patented processes, is now using this expertise to take it to the next level. Meanwhile, the firm still plans to carry on with the contract manufacturing side of the business and said it expects the demand for these services to continue to increase. Under the country's 25-year process patent system, Indian companies have particularly perfected their scientific, technical and manufacturing skills to match the requirements of global drugmakers that are increasingly seeking to offshore many manufacturing activities previously performed in-house.

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