The company, which had set up the project to manufacture the three drugs at a cost of Rs 50 crore, is likely to commence trial production in this quarter and the actual production will commence in the next quarter, Morepen Labs chairman and managing director Sushil Suri said.

The project, once fully commissioned, is expected to contribute around Rs 30 crore to the turnover annually. The drugs also carries an excellent profit margin of around 55 per cent to 60 per cent, Mr Suri added.

The company during the current year will focus more on marketing and distribution, particularly of OTC products. Morepen Labs, during the last three months, have brought eight more states into its purview by increasing the penetration of its marketing force as also shifting its target audience from general physician to specialist, he said.

The emphasis on domestic marketing is a part of its plan to create a proper balance between its international and domestic operations. The reach created by domestic marketing would also enable the company to foray into the OTC segment.

The company is planning to launch 66 new drugs in the formulations segment over the next three years for gastroenterology, respiratory tract infection, dermatology, cardiac, chest and psychiatry.

The company will continue its emphasis on research particularly new chemical entity (NCE). However, it will not invest in any further capacity expansions during the year, Mr Suri said. Meanwhile, the company plans to put its house in order by the end of the fiscal by trying to achieve a zero debt status as also recovering its dues from the debtors. Mr Suri said that though the interest cost which went up substantially during the third quarter - partly on account of the expansion project and partly due to slow recovery - would be put in order in the last quarter, he said.