Sparsha to invest $20 m in pain-relief drug unit

Hyderabad: Sparsha Pharma International, which plans to manufacture low-cost transdermal patch products for pain relief, has decided to invest up to $20 million in production facilities in the country over the long term.

Promoted by a group of US-based NRIs with support from Japanese, the company is setting up its base in Muppireddy Palli village in Medak district of Andhra Pradesh.

In phase-I, the company will invest $6 million, mostly from the promoters’ funds, to establish facilities, transfer proprietary technology and make three products – Fentanel, nitroglycerine and hormonal patches.

Sparsha has acquired 10 acres of land from the Andhra Pradesh Industrial Infrastructure Corporation. Mr Bobba Venkatadri, one of the key NRI promoters, said by end 2009 or early 2010 the company expects to launch the products in the Indian and global markets. For the domestic market, the price would be ten times lower. At present some of these products cost about Rs 1,000-1,200 per patch at import prices, he said. The Japanese, a select few companies, whose top executives are associated in their individual capacities, would help both in technical expertise and funding, he said, without giving details. Venture capital funding would be an option in the Phase-II, when about $14 million would be raised, Mr Bobba added.