Acquisition funded from Internal accruals; Expects turnover of Rs. 150 crore in next 3 years
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Ahmedabad, September 21, 2021: Lincoln Pharmaceuticals Limited, one of India’s leading healthcare companies is planning to launch Cephalosporin products soon. Company has acquired a facility in Mehsana, Gujarat. Company to invest Rs. 30 crore in Cephalosporin plant including capacity expansion and modernisation of the facility. Company to fund the acquisition and capex from internal accruals. Company expects commercial operations from March 2022. The plant is expected to contribute sales of around Rs. 150 crore in the next 3 years. The plant will cater to all the Cephalosporin products i.e. Tablet, Capsule, Dry syrup and Injectable.
The acquired facility in Mehsana, Gujarat has been designed as per the PIC’s and European Region. Company is in the process of applying for WHO GMP Certifications for the facility and expects to receive the same by December 2021. Company is planning to manufacture 20 plus Cephalosporin products and is planning to start product registration soon for the domestic and exports market.
Cephalosporin is a bactericidal, broad-spectrum, and β-lactam antibiotic originally derived from fungus Acremonium, which is used to treat bacterial infections such as pneumonia, skin infections, ear infection, strep throat, staph infections, tonsillitis, bronchitis and others.
Commenting on the development, Mr. Mahendra Patel, Managing Director, Lincoln Pharmaceuticals Limited, said, “The entire expansion for Cephalosporin products will be funded from internal accruals. The Company has earmarked total investment of around Rs. 30 crore for this expansion. Company expects commercial production of the Cephalosporin products by March 2022. In the next 3 years, the facility is expected to contribute sales of around Rs. 150 crore from domestic markets as well as exports.”
Company plans to manufacture 20 plus Cephalosporin products including Cefalexin Oral Suspension BP, Clavulanate Tablets, Cefixime Capsules, Cefuroxime Axetil Tablets among others. Company also looks to export in African, Latin America and Southeast Asia markets and expand to other markets after necessary approvals.
Recently, National Company Law Tribunal, Ahmedabad Bench has approved the scheme of amalgamation of Lincoln Parenteral Ltd and Lincoln Pharmaceuticals Ltd. Amalgamation is expected to bring synergies in terms of operations efficiency, enhance competitive strength, cost-effectiveness and productivity for the combined entity.
The liquidity position of the company is on a strong foundation, supported by healthy cash accruals, and healthy return ratios. Over the last 5 years, the company has delivered a 20% plus CAGR in profits and higher single digit growth in sales. Backed by improvement in the company’s financial risk profile, steady growth in scale & margins, healthy profitability, rating agency ICRA has upgraded the company’s long-term and short-term bank facilities to A and A1 respectively.
Lincoln Pharma has a state-of-the-art manufacturing facility unit at Khatraj in Ahmedabad, Gujarat, complying with stringent international quality and compliance norms and certified by EUGMP, WHO-GMP and ISO-9001:2015. Company has developed 600 plus formulations in 15 therapeutic areas and has a strong product/brand portfolio in anti-infective, respiratory system, gynaecology, cardio & CNS, anti-bacterial, ant-diabetic, anti-malaria among others. Company has filed 25 plus patent applications and is awarded with seven patents. Company has a strong presence in the domestic market nationally with a dedicated field force of over 600 personnel who cater to more than 30,000 doctors, chemists across the country.
Corporate Comm India (CCI Newswire)
