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Rediff.com  » Business » Cipla plan on inhaler exports hits a roadblock

Cipla plan on inhaler exports hits a roadblock

By Rumi Dutta in Mumbai
August 16, 2003 12:37 IST
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Pharmaceuticals major Cipla's plans to export chloroflurocarbons-free inhalers containing budesonide (an asthma medication) to German drug majors has met with a roadblock with German authorities delaying in granting the required clearances.

Cipla, the market leader in inhalation therapy, had tied up with three German companies -- Hexal, Fujisawa and Strada -- last year for supplying budesonide inhalers to be marketed in Germany. The company was to make these inhalers at its Goa facility.

Amar Lulla and M K Hamied, the two joint managing directors of the company refused to respond to an e-mailed questionnaire.

Also, repeated attempts by Business Standard to contact the senior officials met with no response.

If Cipla fails to get the required approval, it may be a body-blow to the company.

According to analysts, the company has ten more CFC free inhalers in the pipeline, which it intends to market in the regulated markets including the US and the UK.

The company, which commands over 75 per cent market share in inhalation therapy, was banking on the inhaler exports in a major way as it is a good revenue enhancing proposition.

The German market for budesonide inhalers is over Rs 900 crore (Rs 9 billion) and Cipla with its exports was set to emerge as the first CFC free budesonide inhaler suppliers in Germany.

The use of CFC-free inhalers have been recommended in developed countries like Germany primarily due to environment related issues.

CFC, an ingredient used to generate the spray in an asthma inhaler, depletes the ozone layer in the atmosphere.

In the past, the company's plans to export 'omeprazole', an ulcer drug, was scuttled with its US partners losing the drug's patent litigation in the US.
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Rumi Dutta in Mumbai
 

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