Contrary to the widespread rumours that Piramal Healthcare Ltd is planning to sell its pharma solutions division, it is on the look out to acquire brands in the female healthcare and osteoporosis areas.
“We are, in fact, keen on expanding our portfolio with more products in the pharma business and plan to add at least 25 more centres to the existing network of 108 pathological diagnostic services centres across the country,” said Mr N. Santhanam, Chief Operating Officer, Piramal Healthcare.
Piramal Healthcare, part of the Piramal group, is present in verticals such as healthcare solutions, pharma solutions, life sciences and diagnostic services. Under the healthcare solutions, the company has two divisions — core formulation and mass market brands.
According to Mr Santhanam, the mass market division is doing well and the company hopes to double its revenue from this segment in the next fiscal to Rs 320 crore. Last year, the company earned Rs 40 crore from this division, he said. To expand its diagnostic services centre network through the licensing route, the company is currently in talks with two companies
He said the size of the mass market pharma products is around 13 per cent of the overall pharma market size of Rs 34,000 crore. In the mass market segment the company is present in anti-infective and short-term prescription categories.
On its pharma solutions division, Mr Santhanam said the company has tied up with innovator pharma companies such as Hoffmann La Roche, Astra Zeneca, Allergan and Pfizer to manufacture and supply products for their brands. The company has so far invested Rs 800 crore in this division for creating facilities in India and abroad.
With likely inventory correction by those innovative pharma companies, the growth will slow down during the next fiscal too. He said, the Rs 1,500-crore Piramal Healthcare is expected to register 10 per cent growth this year as against 15 per cent last year.