Amrutanjan & Austin form clinical trial material venture
The joint venture, named Amrutanjan Pharmaessense, will supply intermediates and active pharmaceutical ingredients (API) for products in Phase I, II and III trials. Amrutanjan will produce the materials at its plant in Chennai, India that houses a pilot plant and analytical laboratory.
US-based Austin will use its sales, marketing and distribution capabilities to support growth of the business. Amrutanjan wants to grow its contract research and manufacturing services (CRAMS) business and believes partnering with a US-based firm will help it penetrate a key market.
“With Austin’s strength in sales and marketing, distribution as well as sourcing and procurement, the managements of both companies are highly confident that the new synergies will create dynamic high value opportunities”, said Amrutanjan in a filing with the Bombay Stock Exchange.
Amrutanjan will produce both good manufacturing practice (GMP) and non-GMP intermediates and APIs. The Chennai plant employs 55 scientists, conforms to ICH Q7 guidelines and houses a good laboratory practice (GLP) compliant analytical laboratory.
Business development
In December Amrutanjan denied reports it was considering selling the business to Emami. Reports of interest in Amrutanjan first emerged, and were confirmed by Emami, in April 2010. Then, after Emami failed to acquire Paras Pharma, fresh takeover reports emerged in December.
K Kannan, general manager of Amrutanjan Health Care, said: “The management is not looking at selling its shares. In fact, the management is quite keen to improve its business base and is looking at some acquisitions to expand the business.”
In its most recent financial results, for the quarter ending September 30 2010, Amrutanjan posted year-on-year growth in revenues of nine per cent. However, expenditure also increased and consequently operating profit dropped 39 per cent to Rs 325.72 lakh ($713,000).
