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K Baburajan
Bangalore, July 13: Bal Pharma Ltd has dropped its project to manufacture sildenafil citrate, the active ingredient that goes into Pfizer's impotence drug Viagra.
The crash in worldwide prices of sildenafil citrate has prompted the company to put its `Viagra venture' on the backburner. Prices of Sildenafil Citrate have now fallen steeply to levels as low as $3,000 to $5,000 per kg due to widespread industry interest in manufacturing the drug.
When contacted, Bal Pharma managing director Shailesh Siroya confirmed the move, saying: ``The union government was going slow with its policies for giving necessary approvals to allow domestic pharmaceutical firms to venture into the niche market.''
According to industry analysts, prices of sildenafil citrate at one time (during the initial Viagra mania) commanded prices as high as $18,000 to $25,000 per kg, depending on the volumes involved. Besides, with Pfizer extending its patent cover for Viagra to more markets, exports are now restricted to thatextent.
During July-August 1998, the Bangalore-based Rs 18 crore company had decided to develop sildenafil citrate and was planning to enter into alliances with foreign players to supply the bulk drug.
Aiming a higher growth rate during the last fiscal, the company had begun research and development activities in this regard at its Bangalore unit. Bal Pharma was planning to source all raw materials indigenously. Currently Bal Pharma has bulk drugs for anti-inflammatory, analgesic, sedative, tranqilizers, and diuretic products, in addition to a host of other products.
Bal Pharma officials had claimed that the company had also received enquiries from Latin American drug producers to enter the segment. ``The company was looking at countries wherein the patents are not yet recognised,'' company officials said.
The actual gameplan of Bal Pharma was to join a host of Indian companies like Dr Reddy's Laboratories, Orchid Pharmaceuticals and Ranbaxy who were in the process of preparing the bulk drug to makeViagra.
It was also planning to approach the Drug Controller of India to seek approval for tabulating the product after conducting sufficient studies in the domestic and international market.
Meanwhile, Bal Pharma is upgrading its manufacturing facility at Bommasandra to meet the requirements of the foreign drug control authorities. Recently it received approval for our Gliclazide, an anti-diabetic drug, from Medicine Control Agency of the UK to market the product there.
Earlier, the company had acquired a running parenterals unit - Miaami Pharma & Chemicals from Lakme Ltd - located near Pune for a sum of Rs 5 crore. The facility currently manufactures intravenous fluids and ear and eye drops for companies like Cipla, Blue Cross, Alkem and Serum Institute. The company has a marketing alliance with Forum of the UK to distribute its products in the UK, US and Ireland.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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