Can you briefly introduce Naprod Life Sciences and how the company fits into the wider NMM Group structure in terms of its capabilities and objectives?

At present, we have three separate companies: Naprod Life Sciences works in finished dosage forms, including anticancer injectables, high-tech lyophilized products and anticancer tablets. The second company, Mac-Chem, is focused on APIs used for formulating the medicines. We have manufacturing facilities to produce oncology APIs in bulk, which are then marketed in India as well as 20 additional countries. The third business, Miracalus Pharma, manufactures the injectable formulations that are used in the hospital segment. In terms of how the audits of the facilities for these companies are conducted, Naprod has its own EU and WHO GMP approvals, Mac-Chem has approval from the USFDA and EU as well as other countries and Miracalus Pharma has EU approval, which is currently under renewal.

Naprod is focused in the therapeutic area of oncology. It was started in the 1990s when the opportunity was observed to develop a specialized and niche product segment. We began a freeze drying technology called lyophilization, which required significant investment in addition to the investment needed to establish a dedicated manufacturing facility. Those constraints help us to maintain our competitive edge. Oncology products were developed by our own R&D center, which has been approved by the Government of India's Department of Industry, and for the past 20 years we have introduced various generic formulations into the domestic market as well as international markets.

In terms of export focus, where do you see the most opportunity to broaden your international presence and what is your strategy to accomplish this?

We are present in most of the major export markets. The fastest growing market is Southeast Asia, where we are present in almost all countries. Our plant was also recently audited by Malaysia, and we expect to begin business there in 2020. The Latin American market is the second most important market for us, and we are currently looking to collaborate with a local partner in countries such as Mexico where the trade barriers are challenging due to the regulatory environment.

What does the ideal partner look like?

We are looking for partners in the chemotherapy and hospital segments. As the company has grown, we have developed a speciality in aseptic processing and high-tech injectable medicines. We broadened this segment to include the injectables, and we now want to grow in the hospital product segment. Companies with a presence in hospital products are traditionally operated through a B2B procurement model as promotional activities are very different in the corporate hospital setting. By working with companies already active in these spheres, we can leverage their experience and connections with our portfolio of specialized oncology products. 

To what extent is Naprod focusing on the opportunities in biopharmaceuticals?

We are scouting for companies that can offer us a basic entryway into biosimilars whereby we collaborate in terms of technology. We do have our own internal team that can work with biosimilar products. However, our major focus is in developing nations, and we find the chemotherapy agent is a much better pathway given the economic conditions of these countries. In five more years, we anticipate that this may change, and we will look to have those facilities available to us at that stage.

How have you observed demand for the Group's contract services evolve in India?  

In India, there is idle contract manufacturing capacity due to different factors and government policies, but our facilities are fully occupied. We see very strong demand for the specialized oncology products and lyophilized products. In the case of APIs, our facilities are also fully occupied, and we are currently outsourcing much of our own manufacturing. Similarly for Naprod, the facilities are currently utilizing the entire capacity, and we are entering an expansion phase to increase the capacity by double or triple over the next year.

Can you elaborate on how government policy has impacted this dynamic?

Government policy towards the pharma industry has been focused on integrating the entire supply chain, which has drastically altered distribution channels. Local distributors that were operating on a small scale model are finding the business no longer viable. The second factor is the introduction of the drug pricing controls, which the government has enacted to promote more affordable medications. While this has opened the India market by providing affordable medicines to wider sections of the population, at the same time there is a disconnect between affordable medicine and the opportunities in the export market. Whoever is able to balance the two will find success.

What final message would you share about Naprod Life Sciences and its objectives in the years to come?

We have a responsibility to serve our society because incidence of cancer continues to increase every year. WHO statistics indicate that the global cancer burden is estimated to have risen to 18.1 million new cases and 9.6 million deaths in 2018. We are proud to be able to provide world-class medicines at affordable prices to thereby support needy patients from across the globe.