Mylan invest $1 billion in India capex in 6 years

Mylan to invest $1 billion in India on capex in 6 years

9:53 AM, 30th September 2019
Mylan logo

HYDERABAD, INDIA: Multinational drug company Mylan said it will invest $1 billion in the next 5-6 years on capex in India, given the importance of the country's position in world pharma supply-chain, and pitched for the government incentivising research and development activities.

Mylan Global President and Executive Director Rajiv Malik said the company had been investing close to about $400 million or $450 million towards Capex every year and half of it in India.

"Half of that has been invested in India as a rule of thumb. So, we have invested about $200 - $250 million in India every year. During the last six or seven years we have invested more than one billion dollars in India to upkeep and expand the capacities, he said. As long as this network is there (in India), we have no other option but continue to invest at the same pace. I would say in the next 5 to 6 years it (investment on capex) would not be less than one billion dollars, he said.

Mylan India's journey started in 2007 after it acquired Matrix laboratories and at that point in time the company was predominantly a manufacturer of active pharmaceutical ingredient (API).

Currently Mylan has 21 facilities and 15,000 employees working in India.

Out of 44 plants we have today, India has 21 of those. So, India is the backbone of the supply chain. We do about Rs 1,000 crore in Indian commercial market, Malik said.

He said the Indian government needed to incentivise research and development activities being undertaken by pharma companies on drug development and new chemical entities, though the country upkeeps its leadership position APIs and formulations.

According to him, during the initial few years, investments on R&D would not generate revenues for any pharma company and many Chinese companies are now focusing on the activity and competing with large corporations in USA and the Europe.

That is where India needs to catch up. We will have to incentivise the R&D. You incentivise and you create infrastructure for the industry to do more R&D so that it is not burdensome on companies, he opined.

Replying to a query, on the voluntary recall of certain batches of blood pressure drug Valsartan from the USA market, Malik said Mylan has addressed that issue and working with the European and US Authorities.

This is not specific to Mylan alone. We have changed the process to take care of that specific issue, the executive said.

Out of an abundance of caution, these products have been recalled due to detected trace amounts of an impurity, N-nitrosodiethylamine (NDEA) a suspected carcinogenic contained in the API Valsartan, USP, manufactured by Mylan Laboratories Limited.

Source: PTI



Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News

Italmatch acquires leading chemical solutions provider in US

NEW YORK, US: Italmatch Chemicals has acquired Water Science Technologies (WST), a leading blender and chemical solutions provider for the North ...

Read more
India's chemical industry to reach $300 billion by 2025: ICC

MUMBAI, INDIA: Indian Chemical Council (ICC), in its conference titled ‘Making India’s Chemical Sector Future Ready’ highlighte ...

Read more
MOL lays foundation stone for €1.2 bn polyol plant in Hungary

TISZAUJVAROS, HUNGARY: MOL Group has laid the foundation stone for the its new polyol plant in Tiszaujvaros, Hungary. The plant is expected to be comm ...

Read more
Celanese to increase acetyl intermediates price

DALLAS, US: Celanese Corporation said that it will increase list and off-list selling prices for the following products. Product U.S. &a ...

Read more
Axalta’s powder coatings business director elected to CEPE board

BASEL, SWITZERLAND: Axalta announced the election of its Business Director for Powder Coatings in Europe, Klaus Gast, to the Board of CEPE, ...

Read more
Strides Pharma suspends sale of Ranitidine tablets in US

NEW DELHI, INDIA: Strides Pharma Science has suspended the sale of Ranitidine tablets after it received an information request from the US health regu ...

Read more uses cookies to ensure that we give you the best experience on our website. By using this site, you agree to our Privacy Policy and our Terms of Use. X