Cadila eyes overseas growth opportunities

Pradeep Rane
09 June 2004

With its domestic operation firmly in place, Cadila Healthcare is now turning to global markets for further growth. As part of its strategy, the company had acquired Alpharma in France and building up presence in the US through two subsidiaries.

The company has also decided that it would be entering a market only if it can add $ 25 million to revenues within 2-3 years. Currently, the thrust is on two semi-regulated markets like Brazil and CIS. In these countries regulations have become favourable for generics.

In Europe, the key focus would be on France, Italy and Spain.

In other mature generic markets of UK and Germany, the company could be looking at acquisitions. In the US the company is working on building a strong team headed by the former CEO of Sandoz.

It has a pipeline of 12 DMFs and ANDAs respectively with target of 16-18 ANDAs and DMFs during FY05 which should create a robust portfolio for growth over the next two years, the company CMD Pankaj Patel told a leading a securities research firm.

Cadila is trying to build strong alliance partners for evolution and sustained earnings growth.

Some of these alliance partners include Altana, Boehringer and Schering which will help the company to develop new projects and earnings stream.

"Cadila's thrust on alliance partners ensures a blend of custom manufacturing and in-licensing opportunities for the future besides its own generic initiatives," according to anlaysts with B&K Securities.

In the domestic market Cadila has identified a basket of 75 new product launches over the next three years, which would drive its domestic formulation business.

These new launches would be from Cadila's stable and does not include the in-licensing opportunities from current alliance partners.