Ahmedabad-based drug company Torrent Pharmaceuticals, which has faced a slowdown in its US business, has now turned its focus on growing its domestic business. The company hopes to clock 25 per cent compound annual growth rate (CAGR) for its India business over the next three years to beat the slowdown in other geographies. Besides, the pharmaceutical firm is working actively on integrating the portfolio Unichem, whose branded business it acquired in November last year. And, it is also set to launch the first product from the stable of its recent US acquisition, Bio-Pharm Inc. The domestic formulations business accounts for the bulk of Torrent’s revenues. It is expected to draw nearly 41 per cent of its revenues from the Indian market this financial year (up from a 34.5 per cent share last year). With the latest acquisition in its kitty – a portfolio of 120 brands from Unichem’s India and Nepal business – the company is now working on repeating what it did with its Elder acquisition four years ago. In fact, the company pointed out in its post-earnings media address that the attrition rate at Unichem had halved in the past month or so. This could be in the hope of a Unichem turnaround after its acquisition by Torrent. Unichem had some great brands, but earlier it was not able to take them forward aggressively. Torrent has more than doubled the portfolio Elder, which it had acquired earlier. The company had acquired 30-odd brands from Elder (for Rs 20 billion in December 2013), the major ones being Shelcal, Chymoral, Enzar, Deviry, Carnisure. According to the company’s spokesperson, Shelcal had now crossed Rs 3-billion mark from a base of Rs 1.5 billion, while Chymoral had touched Rs 1.5 billion from a base of Rs 600 million. After Torrent added a field force of 2,800 from its Unichem acquisition, the company now collectively had 5,000 medical representatives for its India business, the spokesperson said.
On the productivity front, Unichem’s current medical representative (MR) productivity is definitely lower than Torrent’s Rs 600,000 per MR per month, the spokesperson admitted. “We are looking forward to increasing top line to ensure productivity grows further.”