Shasun Pharmaceuticals plans to invest Rs 100 crore in two years on expansion plans. A part of this will be funded through external commercial borrowings of $6 million.
The company’s main thrust will be on a nano-technology joint venture project for cancer cure with US-based Nanoparticle Biochem Inc, with the support of University of Missouri.
“When radioactive gold nano-particles are injected in solid tumour, it can kill the tumour in 30 days, without the need for external chemo or radiotherapy,” said Mr S. Abhaya Kumar, Managing Director, Shasun. Trials on dogs and pigs are set to begin in August. Shasun will have the world-wide rights over this product.
Around $2 million will be invested in the nanotech project in two years. Already, $300,000 has been invested.
The joint venture is also planning to come out with a gel-like application for wound healing, delivered through nano-fibres.
Shasun mainly manufactures APIs for several pharmaceutical companies globally. It recently entered the branded market in India with the launch of a diabetes product and a blood-thinning drug, in Tamil Nadu. Plans are on to launch products for renal failure, cholesterol management and an over-the-counter pain ointment.
The company, which has plants in Puducherry and Cuddalore, also hopes to revive plans for a manufacturing facility in Vizag. Shasun’s mainstay business of ibuprofen will see more derivatives this year.
For the first quarter of FY2012, Shasun has reported a marginal 2 per cent rise in net sakes (consolidated) to Rs 196 crore over the same period last year. Net profit for the quarter was Rs 6.83 crore, against a loss of Rs 2.34 crore last year.
Shasun’s UK subsidiary is also looking good, said Mr Abhaya Kumar. It had posted profits for the first time in Q4 last year after being in the red for five years. (Shasun had acquired the ailing UK pharma company, Rhodia in 2006 and this was renamed Shasun Pharma Solutions.)
The UK subsidiary posted a turnover of Rs 68.90 crore in Q1 FY12 with profit after tax of Rs 4.91 crore compared to turnover of Rs 64.21 crore and profit of Rs 5.01 crores in Q1 FY11. The pre-launch pipeline has 16 live projects spanning clinical phase II and III.