Akums Drugs strengthens global presence with European market expansion
This move is a step towards Akums’ goal of becoming a major player. Image: Facebook
Akums Drugs and Pharmaceuticals, India’s largest Contract Development and Manufacturing Organisation (CDMO), has filed two dossiers in the European Union (EU) as part of its strategy to broaden its portfolio, with a third dossier in the pipeline.
The decision to enter the European market comes at a time when the global pharmaceutical landscape is undergoing significant changes. The US market has experienced volatility and margin pressures, making Europe an attractive alternative due to its stability, size, and unified regulatory norms.
“Europe is a stable market with significant opportunities for new entrants. We already have the necessary GMP certifications for two of our most important dosage forms, and we are confident that this will open up new avenues for growth,” said Sahil Maheshwari, General Manager Strategy, Akums Drugs and Pharmaceuticals.
This move is a step towards Akums’ goal of becoming a major player in the global CDMO landscape and entering a highly competitive global market.
Akums’ decision to enter the European market is a calculated one. While the company has already consolidated its position as the market leader in India, the move to Europe reflects its broader strategy to diversify and tap into global markets. “India will always be a focus for us, but we are now looking to cater to the global market, and Europe is a key part of that strategy,” said Arushi Jain, Director, Akums Drugs and Pharmaceuticals.
Akums has already achieved EU Good Manufacturing Practice (GMP) certification for two of its facilities—one specialising in oral solids and the other in injectables. These certifications allow the company to manufacture and export pharmaceutical products to Europe.
Over the past four years, the company has been on a mission to expand its capacity, both by increasing the production of existing dosage forms and by entering new, emerging segments. The company has operationalised three new formulation facilities: one in Kotdwar, Uttarakhand (dedicated to penems), another in Haridwar, Uttarakhand (focused on injectables), and the third in Baddi, Himachal Pradesh (for oral tablets and liquids). An investment of approximately Rs 350 crore has been made in these facilities.
Looking ahead, Akums has three more facilities in the pipeline, with two located in Jammu and one in Baddi. Similar levels of investment are expected for these new plants.
Akums’ European foray is not just about expanding its geographical footprint; it is a key part of the company’s ambition to become a global leader in the CDMO sector. The new facilities in India, coupled with its expansion into Europe, are expected to drive the next phase of growth for the company.
“The Indian pharma market is growing rapidly, and with it, the CDMO sector. We believe that Akums is well-positioned to not only maintain its leadership in India but also to emerge as a major global player,” Arushi added.
Akums’ expansion into Europe and its ongoing capacity building in India are likely to significantly boost its revenue and market presence. While specific financial targets were not disclosed, the company’s leadership expressed confidence in achieving substantial growth in the coming years.
First Published: Aug 30 2024 | 2:58 PM IST