New Delhi, Dec. 9: Nicholas Piramal India, the second largest pharmaceutical and healthcare company, has entered into an agreement with the US-based Advanced Medical Optics (AMO) to manufacture selected components of eye-care products.
“As per the agreement, NPIL will be an exclusive component manufacturing source for their high technology lenses and lens-care products.While we will develop formulations or finished products for AMO, the basic research has been done by them,” said NPIL chairman Ajay G. Piramal.
By virtue of the agreement, NPIL will become a supplier of neutralising tablets and unit dose from fill and seal solution products that will be distributed through various AMO manufacturing and distribution centres around the world. These products will be manufactured in the formulation's facility at Pithampur, Indore.
The agreement between the two companies is signed for a period of five years with an option of renewal. Exports is expected to begin by January 2005.
“AMO is outsourcing these products from us to cater to their leading markets including the US and Japan. We are happy to note that India is slowly not being looked as a country which can only supply to third world countrie,” he said.
NPIL is expecting to earn revenue worth $15-20 million each year from this agreement. The company targets to achieve exports to the tune of Rs 100 crore by March 2004 and double it in the following year.
The research and development expenditure of the company was doubled to Rs 35 crore for 2003-04, Piramal said. “We have spent almost 2 per cent of our turnover on research in the current year. This will be increased by 3-5 per cent in the coming years,” he said.
NPIL, which is making forays into therapeutic areas, has already formed several alliances for it. The company has recorded a turnover of Rs 11.4 billion and profits after tax to the tune of Rs 1.18 billion in 2002-03.