Indoco Remedies to launch its first own-label product in Europe

Indoco Remedies announced today about winning major tenders in Germany, including AOK for Allopurinol tablets. This is the first time that the company would be launching its own label product in Europe.

Allopurinol tablets are used to treat gout and other types of kidney stones. Indoco Remedies expects to earn revenue of over Rs 70 crore per annum. It has planned to start the supply of the product to Germany from January 2021, which will go on till the end of 2022. The active pharmaceutical ingredient (API) is estimated to be approximately 100 metric tonnes per year for this supply.

Looking at more details of the tenders, Indoco Remedies will be manufacturing Allopurinol tablets at its API manufacturing site set up at Patalganga (Maharashtra) recently. The new plant has a capacity to manufacture 25 tonnes of Allopurinol tablets per month i.e. 300 tonnes annually.

Indoco Remedies has won over 80 to 85 per cent of the tender offers of Germany and the latter, being a tender business-based country, the company expects to get more repeat orders in the future after displaying competitiveness in order execution. In order to remain competitive and be in control of supplies, Indoco Remedies has opted for a backward integration business model.

Meanwhile, its revenue was up by 12 per cent in Q2FY21 as compared to Q2FY20 whereas, the operating profit margin and the profit after tax are up more than 100 per cent in Q2FY21 as compared to Q2FY20.

Incorporated in 1947 and having a spread of around 6,000 employees, Indoco Remedies categorises to be a fully-integrated research-oriented pharma company. It has a turnover of around USD 145 million and a presence internationally in over 55 countries.

The company's stock was trading at Rs 299.00 at 2.35 pm, down by 2.42 per cent as compared to its previous day’s close. It is quite close to the 52-week high, which is Rs 311. Its 52-week low is Rs 145.25 on BSE.