Ind-Swift has now surpassed its 30th year of operation and ranks within the Top 50 Indian pharmaceutical companies. How has the company developed over the years, and what has been the key to its success?

The group consists of two companies: Ind-Swift Laboratories (ISLL), which manufatures and markets APIs and advanced intermediates, and Ind-Swift Ltd. (ISL) which manufactures and markets finished dosage forms (FDFs). Beginning with general molecules in 1996, Ind-Swift Laboratories’ focus shifted from 1999 onward to the regulated and mass markets, introducing clarithromycin, which was subsequently approved by the U.S. FDA and became Ind-Swift’s largest manufactured product. ISLL has two manufacturing faciliites: one state of the art facility in Dera Bassi, Punjab, stretching across 40 acres with a capacity of around 600kl  with many global accreditations including FDA approval; the other in Jammu, J&K, which caters mainly  to the domestic and less regulated markets. We also have one state-of-the-art R&D centre at Mohali. 80% to 90% of the Derabassi facility’s production is supplied to the highly-regulated and semi-regulated markets. Ind-Swift Ltd (ISL) focuses on FDFs. ISL is present in all markets aside from the United States. By strategically avoiding the U.S. market, we achieved fast acceptance from global customers who were assured that ISL had no intention of coming to the United States and competing with them.

Starting with Ind-Swift Laboratories, what are its core activities today?

To date, ISLL has developed around 50 products across 18 therapeutic segments and boasts a full-scale R&D segment, which is currently developing 10 new molecules. Ind-Swift Laboratories has worked on various molecules. Our key molecules are clarithromycin (antibiotic), fexofenadine (anti-histamine), atorvastatin (cardiovascular) and clopidogrel (cardiovascular) . This year, ISLL will cross Rs. 700 crore in turnover with 60% coming from exports. ISLL has one subsidiary in the United States which caters to the North American market  and  another subsidiary in Dubai, which owns the investment made into the Middle East market in partnership with an Iranian company. 

What is the process for deciding which molecules to pursue? 

The first factor ISLL considers is who the original developer is and its patent status  to avoid likelihood of court disputes later on. The second factor is chemistry; a multi-stage product with complex chemistry is of utmost interest to us  as it gives ISLL a challenge and creates a barrier for other companies to follow suit. The third factor is the global demand and potential for growth of the molecule and its therapeutic area. A major achievement of ISLL is that it never had any of its products rejected. This has established the company’s brand as being reputable for consistently producing high-quality products.

Are there challenges arising from global regulatory disparities and any differences in the way Ind-Swift approaches various markets?

Harmonization is important but it is also important to note that the quality system is one across Ind-Swift. Nevertheless, pricing is favorable in the United States over the domestic market, reflected in relatively low sales in India, at around 20% to 30%. In the United States, we receive higher value in exchange for quality, whereas in the Indian market we compete with lower-cost and lower-quality products from countries such as China. Despite this, we uphold quality as the culture for our plants and the prerequisite for the chemistry of our products. There are more than 100 highly qualified staff members working in quality assurance (QA).

Have there been any recent changes to market dynamics?

India’s dependency on China had risen beyond a comfortable level; 80% of the country’s APIs were coming from China – but the Doklam conflict trigerred an awakening call and a realization of the danger of this situation and the need to develop an API policy and domestic clusters. Now that the government has understood these challenges, it recognizes the need for creating clusters, skill-development centers and one-time licensing. A push in policy intervention is anticipated to occur this year. This is a welcome change that gives some importance to the Indian API industry.

Since President Trump’s election, many companies are setting up small facilities in the United States to complete the final step towards a finished product so that it may be labeled as “Made in the USA”. This trend is expected to increase in coming years. Because companies’ formulations are based on a specific API, changing to a different supplier could cost millions of dollars. There is therefore a greater concern for a consistent supply than price. In terms of cost competitiveness, FDF development is in fact cheaper in the United Kingdom and Scotland than in India because of higher competition. In any case, the price of APIs in any FDF is no more than 25%. By having an API plant with last stage production in the United States, Indian companies are able to divide cost and product’s availability. Since their API is released in the United States, fewer questions are asked.

What is the vision for both companies and their final message?

 Within the next three years, these two companies will be merged to save on administrative costs. The merger will also provide more efficiency in R&D as well as better utilization of technical manpower. Additionally, untapped markets will be tapped, such as finished-dosage forms in Russia. The biggest growth market for finished-dosage forms in the upcoming years will be Europe, with Australia quickly catching up .