Lincoln Pharma to set up mfg plant in Gujarat

Ahmedabad: Ahmedabad-based Lincoln Pharma is learnt to be in the final stages of entering into a joint venture (JV) with a US-based company to manufacture formulations. The JV will be set up to produce tablets, capsules and ointments.

A source close to the development said that a manufacturing plant would be set up in Gujarat, for which land could be acquired at Dishman Pharmaceuticals & Chemicals' pharma SEZ at Bavla, which is yet to be notified by the Centre.

The company is looking at acquiring close to 30,000 sq metres of land for the venture. While the US-based company will pitch in with technological assistance, the main R&D centre will be set up in Gujarat.

“Initial indications are that Lincoln Pharma could invest close to Rs 25-30 crore in the JV,” said a market source. Funding for the same will come from the company’s internal accruals. “The company does not plan to divest stake at the moment,” added the source.

The company has a plant near Ahmedabad where it produces tablets, capsules, injectibles, syrups and ointments. To get the USFDA approval for products under the new venture, the company and its US partner have decided to set up the second plant.

Lincoln Pharmaceuticals has obtained drug registration for about 100 formulations in countries including Kenya, Tanzania, Zimbabwe, Uganda, Nigeria, Sri Lanka, United Kingdom, Zambia, Republic of Yemen, Ghana and Thailand among others.