Dr Reddy’s to set up facility for opium-based drugs at Vizag
G. Naga Sridhar | Sunday, 03 August , 2008, 12:34
Hyderabad: Pharma major Dr Reddy’s Laboratories Ltd will set up an exclusive manufacturing facility for opium-based drugs with an investment of over Rs 40 crore.
“The plant will come up at Visakhapatnam. We are also considering commencing production of finished dosages in opium-based drugs,” G.V. Prasad, Vice-Chairman and Chief Executive Officer, told Business Line here.
Dr Reddy’s, one of the only two companies in India (the other being Opium and Alkaloid Works) which has licence for manufacturing opium-based drugs (like morphine), is of the opinion that the segment can yield significant revenue over a period of time. “The competition here is limited and we wish to generate a steady stream of revenue from this division,” Prasad said.
In the next four years, Dr Reddy’s is expecting a “significant revenue from the opium-based drugs”, he added.
This would be possible as the proposed joint venture of Dr Reddy’s with the UK-based Johnson Matthey, world’s largest producer of opium-based drugs, is expected to be operational over the next one year. “We are currently working on the financial aspects of the joint venture, Macred India. The final projects costs are being worked out,” Prasad said.
The Foreign Investment Promotion Board (FIPB) recently accorded approval to Matthey’s plan to acquire 49 per cent stake in Macred India. There would be good prospects for Macred India as the combined strengths of Dr Reddy’s and Matthey can tap the global market in the segment, he added.