BafnaChennai-based Bafna Pharmaceuticals Ltd will begin its innings in ‘contract research and manufacturing’ around December, when its new, Rs 12-crore research facility would be ready.

A “large, well-known European drug manufacturer” has mandated the company to collaborate with it in developing a steroid.

The financial benefits of the CRAM initiative will kick in only during the next financial year. The Chairman and Managing Director of the company, Mr Mahaveer Chand Bafna, however, expects the company’s turnover for the current year to rise to Rs 80 crore against Rs 45 crore for last year, essentially because a new production centre of the company went on stream in July.

Europe sales
The Rs 40-crore facility was built exclusively to service clients in Europe, under contract manufacturing agreements. Mr Bafna told Business Line on Monday that the company has tie-ups with five European drug companies and is in the process of getting approval from the authorities to produce 17 drugs (formulations). These drugs will be manufactured by Bafna, and sold in Europe under the names of the European drug companies.

Mr Bafna said that approvals have been received for three of the 17 drugs. The additional turnover that will come from these three is the basis for current year’s turnover projections. When approval is received for all the 17expected next year , Bafna Pharma would need to expand its facilities. Mr Bafna reckons it will cost another Rs 25 crore.

Bafna Pharma has reported a net profit of Rs 1.23 crore for the quarter ended September, which is more that the net profit for the entire year of 2008-09, which was Rs 1.06 crore. In the corresponding quarter of last year, the company made a net loss of Rs 23 lakh. Net profit for the first half of the year was Rs 2.19 crore.Turnover for the quarter was Rs 17 crore compared with Rs 9.29 crore in the corresponding quarter of last year.