Managing director K Raghavendra Rao said the necessary documentation had been submitted for the product and that Orchid would embark upon clinical trials if called for.

"We are willing to comply with the regulations required, but would like to get the process started as soon as possible," he said. There are an estimated 30 million people here ready to use the product. While 4 of the raw material components would be imported, the rest (constituting around 26 items, will be available locally). Orchid is looking at sildenafil citrate formulations for export.

At the annual general meeting on Friday, Rao said the company would start manufacturing the bulk drug next month and the first batch of exports would be ready by August-end. The exports would betailored to suit orders and would perhaps be a maximum of one tonne at a time.

As Pfizer had patented the product in the lucrative markets of US and Europe (31 countries), other players were restricted to the smaller markets, which also promised good prospects, he said.

But Rao could not quantify the demand for the sildenafil citrate exports as he felt it was too early. "Even Pfizer's product is only 100 days old. We have to tie up with companies which are allowed to formulate in the remaining countries and firm up bulk supply arrangements. The picture would be clearer after August," he said.

There would be no problem in manufacturing this bulk drug within the current capacities of 400 tonne at Orchid's premises, he said. The company had formed a long standing plan to move into non-cephalosporin high value products once saturation levels were reached in the cephalosporin line. The company had already stopped making cefachlor (one of the products in this family) because of lower realisations.

Theunaudited results of the quarter ended June, 1998 when compared with the figures for the whole of fiscal 1997-98, have shown a sales and operating income of Rs 60.59 crore (Rs 242.43 crore).

Interest and finance charges are Rs 5.54 crore (Rs 19.38 crore). Gross profit after interest before depreciation and taxation is Rs 12.15 crore (Rs 45.22 crore) and net profit Rs 8.53 crore (Rs 34.07 crore).

The paid-up capital is Rs 17.34 crore and reserves excluding revaluation stand at Rs 124.63 crore.

For the current year the company will be exporting more of Cefixine (a high value product with a single dose application for treatment) which is expected to fetch a revenue of $2,500 per kg. Along with sildenafil citrate, 18 other products would be manufactured such as roxythromycin, clarithromycin, azythromycin, (derivatives of erythromycin) and lansoprazole (an anti-ulcerant).

While Orchid's new formulations plant near Irungattukottai here (a Rs 30-crore project) is expected to be commissioned in March 1999,the company has already made subcontracting arrangements for producing formulations. The formulations would be marketed one month from now and the market would thereby be readied by March 1999.

Orchid is expected to be ready with its captive generation power by the end of this month, three months ahead of schedule. It would also be through with backward integration of key intermediaries for its products by October.

It has also embarked on a parallel integration of new products by balancing equipment with three of the 17 new products introduced last fiscal. A sum of Rs 100 crore for this had already been tied up last year.

There would be no fresh borrowings for the company this year and its debt-equity ratio would come down to 1:1. Rao also pointed out that all the expansions notwithstanding, the return on capital expenditure was 30 per cent, among the highest in the industry (taking into consideration an expected time lag). Meanwhile, C Bhaktavatsala Rao, a board member, has been appointed deputymanaging director in charge of the formulations division.

Game of the name

Orchid is planning an open contest inviting suggestions to name the company's brand of the future `desi' blockbuster Viagra clone sildenafil citrate. The public would be invited to make its suggestions.