Economy

Indian pharma giant in licencing agreement with local firm

22 Oct 2013 - {{hitsCtrl.values.hits}}

Local pharmaceutical manufacturer, Lina Manufacturing Private Limited, a subsidiary of Akbar Brothers, has offered to manufacture respiratory care products for the Indian multinational pharmaceutical giant, Ranbaxy Laboratories Limited, under a licencing agreement, according to a top official.

Lina Director and General Manager Rohan Wetthasingha told their award-winning wheezing inhaler invested in Sri Lanka will be manufactured under the Ranbaxy brand name and initially available in the Sri Lankan market before starting bulk manufacturing to be sold in other Asian markets by the principle.

“We officially launched the product a fortnight ago at the Sri Lanka respiratory care association in Kandy and it will be available in the market from November 1,” he said.

Even though the inhaler is now manufactured under an Indian brand name, the enhanced molecule for this product was originally invented by a Sri Lankan medical professional six years ago and has been available under the local brand name ‘ Ventohaler’ since 2011, when the commercial production started.

Wetthasingha however told that the product would continue to offer to the market in the local brand name too.

“And we will bid the government tenders i n our brand name,” he said.

However, it is uncertain as to how Lina is going to compete in the domestic market with Ranbaxy, if the latter turns to become more aggressive in the market.

Indian drug importers often undercut their prices to win the government tenders over the local drug manufacturers when bidding for government tenders, which is possible due to the economies of scale available for the Indian drugmakers.

Nevertheless, according to the Memorandum of Understanding entered with Lina, Ranbaxy cannot bid for government tenders for this product.

Wetthasingha however did not forget to offer the due credit to Consultant Physician and University of Sri Jayewardenepura Lecturer Dr. Anil Goonatillaka, who developed the enhanced inhaler and also researched the unique mix of ingredients for the chemical that is inserted into the inhaler, for which he won the Presidential Awards.

However, later in 2011, Akbar Brothers Ltd, Sri Lanka’s largest tea exporter, has offered Dr. Anil Goonatillaka to commercialize the product and produce in mass scale, giving birth to the new entity, Lina.

Since then, Lina has exported this bulk mix of ingredients to India five times, from where it is re-exported to Europe and other markets.

Economy

Indian pharma giant in licencing agreement with local firm

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