Indoco Remedies FY 21 Annual Reports Highlights

Company overview

Indoco, was incorporated in 1947, 2 weeks after India achieved its independence with the principal business of importing pharmaceutical formulations and distributing them in Western India. Today, Indoco manufactures and markets its drugs in India as well as exports them to various other countries. Their domestic formulations business generates 70 million prescriptions annually. They are also involved in the manufacturing and sale of APIs. They also provide CRO and analytical services.

Business model

Indoco sells branded generics in the domestic and emerging markets. Their European business is a contract manufacturing model where they sell formulations to other pharma companies that market the product. The US business is conducted under a partnership model where Indoco does the manufacturing and the selling is done by a partner in the US. The profits are shared by Indoco and the partner.

In the domestic formulations business, the company offers products in a range of therapeutic areas like respiratory, stomatology, women’s health, nutritional products, gastroenterology, cardiology, metabolic disorders and primary care medicines. Indoco sells its domestic formulations under 9 divisions.

In the international domestic formulations, the company sells its finished dosage forms to regulated as well as emerging markets. Indoco sells branded generics In the emerging markets of Africa, Asia, CIS and LATAM. They have their own field force in parts of West Africa, Kenya, Sri Lanka and Myanmar. They follow a distributor model for the rest of the emerging markets. 

Their US products consist of injectables, ophthalmics and solids whereas the Europe business deals mainly in tablets and capsules. They also have a CRO division named AnaCipher which offers a complete range of BA/BE services, pharmacokinetics, steady state studies, food effect studies, taste evaluation formulation studies, single and multiple dose studies.

Manufacturing facilities

The company has 6 Finished dosage forms facilities and 3 API facilities. A new API facility at Patalganga was acquired by Indoco with the aim of backward integration of most of the ANDA filed products.The facility is USFDA approved.  In addition to Patalganga, the Company has two more sites at Rabale, viz Kilo Lab facility which is USFDA approved and an intermediates manufacturing facility, which supplies intermediates to both the Kilo Lab and Patalganga plants. Of the 6 formulation plants 3 are located in Goa, 2 in Baddi and 1 in Waluj.

Revenue split by therapy

In the domestic market, the company has a market leading position in Stomatologicals, Respiratory, Anti-infectives and Gastrointestinal therapies. Together, these 4 therapy areas make up close to 65% of the company’s domestic revenues.

In the export business, about 48% of the company’s revenue comes from Europe, of which the UK is the largest country . The other key markets for export are the US, French West Africa, Kenya and Germany.

New Product Launches

During the year, the company launched 9 new products out of which four were in anti-diabetic, two in anti-infective and one each in stomatological, cardiac and vitamin/mineral/nutrient segments. The company’s long term vision is to grow into the chronic segment. Of the 9 new products launched in FY21, two are in the acute, one in sub-chronic and six in the chronic segment.