Speaking to The Financial Express, deputy managing director CB Rao said that the areas that the company will work on would be anti infectives, Cox 2 Inhibitors, cardio-vascular drugs, ``but all will be new patentable chemical entities.'' The company had earlier applied for patents in polymer adducts (which delivers antibiotics in a unique and highly effective manner). It had started trials on animals for four antibiotics and the full spectrum of trials here are to be wrapped up by September. However Orchid plans to do more tests overseas to get better acceptance and a greater leveraging strength while marketing globally.

On the domestic front, Orchid's R&D has developed a new chemical process for an anti-inflammatory/anti depressant drug already available overseas through the fermentation route. Declining to name the end product, Rao said that the product would be more competitive in pricing on account of lower costs here than in Europe. The process route initiated by Orchid would also ensure high levels of purity under controlled manufacturing conditions. This drug will also be used in combination with other anti-depressants to make it either more of an anti-depressant or with other anti-inflammatory to make it more of an anti-inflammatory product, depending on the market.

Both the bulk drug and formulation facilities are coming up in Chennai. The bulk drug facility will have a capacity of 30 mt/year (which can be upscaled) with an investment of Rs 6.5 crore while the formulations facility will have investments of Rs 6 crore.

These will be marketed overseas and only as dietary supplements which do not require FDA approval.Orchid Healthcare (a division of Orchid Chem) had tied up with a Chennai-based institute, JSS College of Pharmacy to develop nutraceuticals for the Indian market last year. One product, a lipid-lowering product will be ready by August. Over here, a combination of drugs were used to arrive scientifically the optimal result.

After transferring the technology, JSS will move over to do contract research on an anti-diabetic product to be followed by liver treatment product and one for general health. However all products will be launched simultaneously along with some existing/ accepted products to be launched as a basket of ten and will not be in the near future.

Orchid's joint venture company in the UK, Orchid Nutricare (with Orchid having 65 per cent and Cambridge Chemicals 35 per cent stake) got the first consignment shipped in the last quarter last year worth Rs 70 lakh.