INDIA – Indian drug maker Lincoln Pharmaceuticals Limited has acquired a facility in Mehsana state in India that makes antibiotics used in the treatment of pneumonia and bronchitis, among other ailments.
The acquisition along with capacity expansion and modernization entails an investment of US$4.07 million (Rs 30 crore) which Lincoln Pharma will fund through internal accruals.
The plant will manufacture Cephalosporin products which is a bactericidal, broad-spectrum, and β-lactam antibiotic originally derived from fungus Acremonium.
To be manufactured in tablet, capsule, dry syrup and injectable forms, Cephalosporin is used to treat bacterial infections such as pneumonia, skin infections, ear infection, strep throat, staph infections, tonsillitis, bronchitis and others.
According to Lincoln Pharmaceuticals Ltd.’s managing director Mahendra Patel, the company expects commercial production of the Cephalosporin products by March 2022.
“In the next three years, the facility is expected to contribute sales of around Rs 150 crore (US$20.3 million) from domestic markets as well as exports,” said Patel.
The acquired facility in Mehsana, Gujarat has been designed as per the PIC’s and European Region. However, Lincoln Pharma is in the process of applying for WHO GMP Certifications for the facility and expects to receive the same by December 2021.
Apart from planning to manufacture 20 plus Cephalosporin products, the company is also planning to start product registration soon for the domestic and exports market.
Meanwhile, the National Company Law Tribunal, Ahmedabad Bench, recently approved the scheme of amalgamation of Lincoln Parenteral Limited and the company.
The scheme will be effective upon filing of certified copy of the order of the NCLT with the Registrar of Companies, Gujarat, it added.
“The corporate restructuring practice will bring lot of synergies for both the company and will lead to increased competitive strength, cost reduction and efficiencies, productivity gains, and logistic advantages, thereby significantly contributing to future growth,” Lincoln Pharmaceuticals Ltd MD Mahendra Patel said.
Lincoln, a reputable pharmaceutical manufacturer has made this move at a time when the global pneumonia therapeutics market is projected to reach US$25,546.8 million by 2030, registering a CAGR of 8.5% from 2021 to 2030 according to a report by Allied Market research.
The market, which is currently valued at US$12,293.9 million, has been largely fueled by Covid-19 as individuals suffering COVID-19 are highly susceptible to pneumonia.
As in Bronchitis treatment, increase in R&D for the treatment of COVID-19-associated pneumonia is expected aid the market to generate high revenue during the forecast period.