Wanbury and Dishman Pharmaceuticals & Chemicals think that outsourcing will not only increase in 2009 but will also play a significant role in their future growth, reports DNA.
Both the companies anticipate contract research and manufacturing services (Crams), which means outsourcing of research and manufacturing work to low-cost countries like India, to improve their sales drastically this year.
The company said that it works with innovator companies seeking lower costs. With the economic meltdown there would be more outsourcing of research and manufacturing to India.
Presently, Crams contributes about 75% to Dishman Pharma`s revenues of Rs 8.03 billion. The company, which expects to end fiscal 2008-09 with sales of Rs 10 billion, sees contribution from Crams increasing by over 10% in the coming years.
The Rs 6.18 billion Wanbury expects Crams to grow by 30-40% this year.
Shares of the company closed up Rs 3.15, or 6.98%, at Rs 48.30. The total volume of shares traded at the BSE was 11,983 (Friday).