The company will decide on the location for the research centre by February. It will be either in Chennai or in Bharuch, Sun Pharma officials said at the sidelines of the Edegra launch - an oral therapy drug for men with erectile dysfunction.

The company, which is close to achieving a zero-debt status, will utilise its cash surplus to fund the project. The research centre will house around 150 to 200 scientists. Recruitment for the same has already commenced, officials added.

The company is also focussing on improving its share of formulations in the export market. It is laying thrust particularly in China and Brazil. Formulations constitute 66 per cent of its exports while the rest is bulk drugs. The company plans to hike formulations exports to 70 per cent, which also gives it better margins, the officials said.

Officials said Edegra, priced at Rs 12 for 25 mg, Rs 18 for 50 mg and Rs 28 for 100 mg, is a drug classified as a schedule H drug and will be available strictly against prescription from qualified psychiatrist, urologist and endocrinologist.

The company has already collected a xerox of 750 prescriptions in the first two days of the launch of Edegra. The product, currently imported, has been priced lower on account of the price decline for the key input to Rs 4,000 per kg from Rs 24,000 per kg during the last six months or more, the officials said. During the last four months, the company conducted as many as 70 symposiums spread across the country for medical practitioners besides six public awareness campaigns and 12 sex education seminars.