STRATEGY PLANNING AT KEMWELL INTERNATIONAL

PVT LTDBY : LOHITH.D

MBA ILAM

CONTENTS COMPANY PROFILE BRIEF HISTORY ABOUT THE COMPANYCOMPANY’S STRATEGIES, PARTNERSHIPS &

ACQUISITIONS.FUTURE OBJECTIVESREFERENCES.VIDEO CLIPPLING OF THE COMPANY.

COMPANY PROFILE• INDUSTRY TYPE Global Contracting Manufacturing Organization for

Pharmaceuticals, Clinical & Biopharmaceutical companies.

• CORPORATE HEADQUATERS Bangalore, INDIA• YEAR FOUNDED 1980

CONTINUED….

• KEMWELL FOUNDER SUBHASH BAGARIA [CHAIRMAN & M.D]• FACILITIES INDIA – Analytical R&D, Formulation Development,

Clinical batch production, Manufacturing on commercial scale, Packaging and Global Distribution.

SWEDEN – Analytical & Mfg Services. USA – Marketing & Sales.

• EMPLOYEES 1000+ worldwide• COUNTRIES

Supply to over 80 countries worldwide.• REGULATORY APPROVALS

USFDA, EMA & Japanese Regulatory.

HISTORY Kemwell , initially an API

manufacturing company bought from an IISc scientist with a turnover of Rs 20 lakh, and making losses of Rs 6 lakh annually.It took some time, and a lot of effort to bring the company to the present level, says Subhash Bagaria, the founder and chairman, Kemwell.

Bagaria says :“ After taking over, Kemwell started doing its

own branded products, but were making more losses. Later a close friend of his, in GSK advised him to close it down since the competition was too high, and we were very small. We closed it, we thought of starting contract manufacturing.

Since that day, we are doing contract manufacturing and nothing else. The moment we closed API business and our own products, the company stopped making losses” .

COMPANY’S STRATEGIES, PARTNERSHIPS & AQUISITIONS

1) Pure play strategy a)The company’s strategy has been to continuously grow itself in contract manufacturing and nothing else.

b)Kemwell never looked at putting its own brands again in the market and competing with its customers. Bagaria believes, “It is best to be a pure play player in contract manufacturing. And that is the reason why we are getting so many orders.”

c)Building long-term relationships for commercial products is necessary for any large CMO to sustain long-term growth.

d)Kemwell has long-standing relationships with innovator companies such as AstraZeneca, Bayer, GSK, J&J, Novartis and Pfizer, for the Indian market. And to meet the enlarged pipeline of projects, Kemwell has expanded its manufacturing capacity in the last few years.

The majority of dosage forms company offer’s today, which marry European and Asian strengths, are:

Solid dose tablets; uncoated, sugar-coated and film-coated (solvent and aqueous) tablets; suppositories; effervescent and bi-layer tablets; hard gelatin capsules filled with powder, granules, pellets or liquid-orals; semi-solid creams, gels and ointments; and controlled and psychotrophic drug substances.

2) Upgrading of in-built FOX-PRO to SAP ERP in 2005

a) Modules like finance, material management, production planning, quality management, plant maintenance, sales & distribution and asset management were integrated on-line.

b) The major benefit being that as every transaction could be displayed immediately whenever any audit is done internally or by the parent company, it was easier to churn out the requisite information."

3) Europe focusWith a long-term aim of establishing itself in Europe, the company acquired Pfizer’s manufacturing facility in Uppsala, Sweden in 2006. The facility approved by US Food and Drug Administration (FDA), the European Medicines Agency (EMEA), and Japan’s regulatory authority, supplies products to over 80 markets, including the US, Europe and Japan.

• The strategic acquisition resulted in significant growth in Kemwell’s contract business, and provided it the access to technology and quality standards on a continuing basis.

• The addition of Pfizer’s manufacturing capabilities to its operations have allowed Kemwell to transfer some of the learning and experience, from Europe to India, and has enhanced in the expansion of its contract manufacturing business.

• The acquisition also provided Kemwell with a global site to serve its customer base, in addition to its four sites in Bangalore, thus significantly reducing customers’ sourcing risks

4) PARTNERSHIP WITH GLAXOSMITHKLINE(GSK) Kemwell in partnership with GSK in NOV 2008

sets up a new R&D facility in Bangalore to cater to GSK’s global oral healthcare development projects.

Eg) SENSODYNE toothpaste

5) Strategic alliance with Patheon - April 2009Patheon a global service provider of drug

development and manufacturing services based in Canada.

6) Kemwell steps into Biological arena in 2009 Kemwell signed a technical alliance with

Boehringer Ingelheim , GERMANY to take its first step into the biologics arena.

• The agreement with Boehringer Ingelheim is a technical and marketing alliance.

• The overall purpose of the collaboration as strategic partners is to offer customers at their choice broader contract services and have a shorter period of product development.

• A smooth technology transfer from the various stages of clinical development and manufacturing to the benefit of both companies, the health market and, ultimately, the patients..

• Boehringer Ingelheim is helping in building Kemwell's new Greenfield state-of-the-art facility which is spread over 15,000 sq m and is designed for process development, fermentation, purification and formulation of biologics for early-phase pre-clinical and clinical studies design, cell-line development, process development and transfers, and training of employees.

KEMWELL’S REVENUE

• During the last fiscal, Kemwell revenues stood at Rs 300 crore and it is now targeting Rs 350 crore from the current fiscal. The new facility will add another Rs 250 crore, once it is fully utilised.

FUTURE OBJECTIVES

• Over the next two-five years, Kemwell Biopharma will expand its client roster to service small biopharmaceutical companies in developed countries like USA, Europe, Australia etc. to help them reduce their prohibitively high costs of R&D by offering biologics contract manufacturing facilities.

REFERENCES

1) www.kemwellbiopharma.com2) Biospectrumindia.cio/.com>biobusiness3) www.expresspharmaonline.com4) www.kemwell.com

VIDEO CLIPPING

Kemwell.flv

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