Unfazed by the news of hostile block share deals of its shares on the Bombay Stock Exchange this week, Orchid Chemicals & Pharmaceuticals Ltd today announced the formation of its wholly owned subsidiary in Japan called Orchid Pharma Japan K K, headquartered in Tokyo, and headed by Kunihiko Iwata, its president and chief executive officer.
Orchid says the Japanese subsidiary will steer its entry into the high potential and growing $2.5-billion Japanese generics market, which it expects to grow at a rapid pace in the coming years due to an increasing recognition in the government and healthcare sectors for quality generic products.
The Chennai-based Orchid says the Japanese generics market could double itself to $5 billion within five years.
"We expect the Japanes generic market to grow rapidly over the next few years and we expect to be among the leading players in this market with a turnover of about $100 million in about five years' time,'' says K Raghavendra Rao, Orchid's managing director.
''We are also happy that we could get on board a top management team at Orchid Pharma Japan which has the drive, expertise and experience to lead Orchid to an exciting future in Japan," adds Rao.
''Orchid, with its comprehensive range of antibiotic and life style products, is ideally positioned to meet a broad spectrum of acute and chronic therapy needs of the growing Japanese healthcare market,'' the company said in a regulatory filing.
The move into Japan follows Orchid's highly successful emergence in the US antibiotics generics market as a leading cephalosporin generics player, which Orchid says it set to achieve in the European antibiotics generics segment. Orchid has already filed over 15 dossiers with European regulatory authorities.
Iwata sqaid that Orchid Japan's strategy would be to deliver cost-effective drugs to the Japanese healthcare system, fully leveraging Orchid's capabilities in a wide range of antibiotic and life style medicines.
"Orchid's successes in the demanding US and European markets, its diversified product range coveting several therapeutic areas, its US FDA and UK MHRA approved manufacturing facilities covering both sterile and oral dosage forms, successful partnerships with global generics players point to the potential Orchid Offers for this market," Iwata added.
Orchid has been in the news most of this week for block purchases of its shares in the secondary market by Solrex, that is said to be the investment vehicle of Ranbaxy's promoters, which analysts fear could be hostile acquisition attempt.