BAL Pharma poised to strengthen its position in diabetes segment through Its Active Pharmaceutical ingredient (API) Gliclazide
28, 2021 PRNewswire -- BAL Pharma, a fully integrated pharmaceutical company specialized in Prescription Drugs, Generics, pharma intermediates and Bulk Actives, is further strengthening its market leading position in Gliclazide API with higher capacity utilization at the existing facility, and the streamlining of new facility that commenced production of Gliclazide in September 2020.BAL Pharma is one of the largest producers and exporters of an API Gliclazide, which is used to treat type 2 diabetes.
BENGALURU, India, Sept. 28, 2021 /PRNewswire/ -- BAL Pharma, a fully integrated pharmaceutical company specialized in Prescription Drugs, Generics, pharma intermediates and Bulk Actives, is further strengthening its market leading position in Gliclazide (API) with higher capacity utilization at the existing facility, and the streamlining of new facility that commenced production of Gliclazide in September 2020.
BAL Pharma is one of the largest producers and exporters of an API Gliclazide, which is used to treat type 2 diabetes. The company has a total capacity to manufacture 17.5 MT Gliclazide per month. One of the manufacturing facilities located at Bommasandra, Bengaluru, with the capacity of 7.5 MT per month, its capacity utilization dip to 60% due to Covid-related lockdown, which bounced back to 85% utilization level in FY2021. The second unit with a manufacturing capacity of Glicalzide of 10 MT per month is located at Udaipur, Rajasthan, which has started production in September, 2020. This new facility operated at 35% utilization during FY2021 which has now stabilized and has been operating at 45% during the first five months of FY2022. With improved utilization, BAL Pharma is further strengthening its market leading position in Gliclazide. The Company expects to achieve an average utilization of 70% of its Gliclazide capacity in FY2022.
Gliclazide, API is a sulfonyl urea component used for treating type-2 Diabetes, has been an important contributor in the company's earnings. In terms of volume, BAL Pharma controls over 25% of the world's Gliclazide market of 415 tonnes as per IQVIA report and is growing at the rate of 5% per annum . Company also captively consumes its Gliclazide for manufacturing formulations. Its Domestic formulations are sold under the brand name DIABEND. The Company generated about 44 % of its total revenues from Gliclazide in FY2021. Company generated ₹100 crores of revenue in FY21 from Gliclazide (API+ Formulations) Although, the company has increased focus on marketing the other products aggressively, BAL Pharma's API revenues are likely to be substantially contributed by gliclazide in the medium term given the time lag expected in ramp up of new products.
BAL Pharma Gliclazide API exports footprint covers more than 35 countries across the world. The Company is targeting to further expand geographic presence in Gliclazide and has supplied samples to new customers. Domestic market for Gliclazide (API + Formulations) is close to 60% of overall sales of Gliclazide for FY21.
Besides improving the market share, BAL Pharma is also committed to reduce import dependency for Gliclazide raw material N-Aminio Azabicyclo octane (3,3,0) hydrochloride. Around 70-75% of the raw material for this product is imported from China. To reduce the exposure and dependence of import, the Company has tied up with domestic suppliers for sourcing raw materials and is also exploring opportunities for backward integration. The Company is confident of reducing the imports to less than 33% over the next three years. Overall. import as a per centage of total raw materials for FY2020 and FY2021 stood at 34% and 42% respectively.
''BAL Pharma has managed to improve its capacity utilization following the easing of Covid-related supply chain and logistical issues. With this, the Company is poised to further strengthen its market leading position in diabetes as a therapeutic segment. BAL Pharma's leading product Gliclazide enjoys consistently growing demand from customers across continents, enjoying sizable brand equity in API and formulations. Soon the Company will launch its formulation of Gliclazide MR 30 and 60 mg tablets in the EU market and is expected to file dossier in Q1FY23. While Africa and Latin America remains the dominant market for export formulations, the Company is targeting increasing its presence in various other geographies like Southeast Asia and CIS countries,'' said Mr. Shailesh Siroya, Managing Director, BAL Pharma.
About BAL Pharma Ltd.
BAL Pharma Limited (BSE: 524824) (NSE: BALPHARMA) is a fully integrated pharmaceutical company specialized in Prescription Drugs, Generics, pharma intermediates and Bulk Actives. BAL Pharma's focused therapeutic areas are oncology, diabetes, gastroenterology, and dermatology, The Company is one of the largest producers and exporters of Gliclazide, a medicine to treat type-2 diabetes. BAL Pharma's niche APIs and FDFs are produced at world class manufacturing facilities located at Karnataka, Maharashtra, Rajasthan, and Uttarakhand. The Company exports APIs to Europe, Australia, Japan, Far East, Canada, Latin America, Africa, Middle East, and other World markets. Its FDFs are exported to Semi-regulated, Non-regulated market, and a select regulated market, besides having a robust domestic presence. Backed by strength in Research and Development, and strong infrastructure, BAL Pharma is poised to become a significant company in the pharmaceutical industry.
Forward-Looking Statement: Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. BAL Pharma Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.
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