Neopharma, the Abu Dhabi-based pharmaceuticals manufacturer, has ventured into biotechnology and nanotechnology-based research and manufacturing capabilities.

The company is setting up facilities to manufacture nutraceuticals, ophthalmic products and aerosols.
Manufacturing lines are concurrently being set up for a group of antibiotic drugs called cephalosporins with separate areas allocated for both oral and injectable variations.

With an investment outlay of Dh250 million ($68.06 million), the new facilities will be designed on the guidelines recommended by the US Food and Drug Administration. Equipment for the expansion is being sourced from best-in-class companies worldwide and commercial production is expected to begin within 14 months.

Elaborating on the series of new expansions, Abdullah Humaid Al Mazroei, vice-chairman, and Dr B R Shetty, managing director and CEO, Neopharma, said the new facilities would form an integral part of the company's horizontal integration process to produce additional pharmaceutical dosage forms and mark its foray into high-technology- based R&D.

Present at the groundbreaking ceremony for the expansion was Sheikh Nahyan bin Mubarak Al Nahyan, the UAE Minister for Higher Education and Scientific Research and chairman of Neopharma.

Other dignitaries included Salem Bin Omeir Al Shamsi, chairman of the Federation of Commerce and Industry and chairman of the Abu Dhabi Chamber of Commerce and Industry, and MD Mallya, chairman and managing director, Bank of Baroda.

Organic growth initiatives

"Neopharma is aggressively pressing ahead with its organic growth initiatives," said Dr Shetty. He described support from the Bank of Baroda, the lead financing partner, as "a significant stimulus."

"The new facilities will mark our foray into high-technology-based R&D. In the long-term, our initiatives will contribute to creating suitable opportunities for students in the country and help create a professional talent pool.

"Companies across the globe are reluctant to start new initiatives due to the impact of recession. Yet, at Neopharma, we have been aggressively pressing ahead with our organic growth initiatives that remain crucial to the future of the company."

Dr Shetty said the success of pharmaceutical companies depended to a large extent on the ability to introduce new and novel therapies. The investments Neopharma was making would provide the impetus for sustainable growth.

"Businesses must adopt the organic route to improve and sustain the nation's manufacturing capabilities. This is our social responsibility - to create, develop and sustain the economic foundation for the good of future generations," he added.

Innovative drugs

Neopharma has differentiated itself by offering innovative drugs through in-house research or through landmark joint venture partnerships.

Its in-house R&D efforts saw the introduction of products including medications for diabetes and the management of angina. The joint venture with biotechnology major Biocon heralded the introduction of a novel nanotech-based oncology product Abraxane that is used in the treatment of breast cancer.

The company recently received approval for manufacturing Oseltamivir BR Flu for the treatment of H1N1 infections. The product is an outcome of its joint venture with the pharma major Hetero Drugs.

The new initiatives are expected to help the company obtain an early lead in nanotechnology-based devices.