Orchid Pharma Will Invest Up To Rs 500 Crore To Build A Unit Under PLI Scheme

Under the Production-Linked Incentive (PLI) scheme, Orchid Pharma would invest Rs 300–500 crore over the next two years to establish a new factory to produce essential key starting materials or drug intermediaries. The Chennai-based company estimates that there will be a 2,000 tonne demand for these fermentation-based intermediaries in other nations.

The government has allocated two years for the establishment of the plant. Manish Dhanuka, MD of Orchid Pharma, told analysts that the company anticipates establishing the facility within that time frame. The anticipated capex ranges from Rs 300 crore to Rs 500 crore.

Orchid BioPharma, a fully owned subsidiary of the business, has received approval under the PLI scheme to produce the product 7-ACA for 1,000 metric tonnes annually. According to Mridul Dhanuka, executive director of Orchid Pharma, the approval will benefit the company in backward integration, reduce reliance on sourcing from China, and increase overall business profits.

Regarding the product pipeline, he stated that the development of Ceftaroline is on schedule for a December commercial launch. For the US market, the business will file the drug master filer.

Enmetazobactam, a novel chemical compound created by Orchid Pharma for the Indian market, is also progressing as planned. The clinical data management site for the product's formulation and manufacture has also been shuttered, along with the clinical research organization for the clinical study.