Divi’s Labs ‘develops process to make COVID-19 drugs from indigenous inputs’

Divi’s Laboratories has developed a process to manufacture Hydroxychloroquine and Favipiravir, which are used in the treatment of COVID-19, from indigenous raw materials

“The pandemic has only increased our responsibility to manufacture new APIs for COVID-19 while potential vaccine is being developed worldwide,” managing director Murali K.Divi told the annual general meeting that was conducted virtually on Monday.

The company has quickly “developed the process for Hydroxychloroquine and Favipiravir manufacturing from indigenous raw materials. These drugs are currently approved for treating COVID-19 and we are completely prepared to meet the demand,” he said in his speech, a copy of which the company shared with the stock exchange.

Divi’s has also developed the process for four difficult-to-make intermediates of Remdesivir, another drug used to treat COVID-19 patients. “We are ready to supply if the need arises,” he said.

Noting that COVID-19 has heavily impacted small, medium and large industries, he said pharma industry remains less impacted because of the need to support life-saving medicines. It, however, continued to encounter certain difficulties. “Fluctuations in costs, availability of raw materials, supply chain issues” are some of them.

“We are closely monitoring the everchanging situations caused by this pandemic and are optimistic about ensuring uninterrupted supply of our API,” Mr.Divi said.

On growth plans, he said Divi’s Laboratories had last fiscal announced it has taken up ₹1,800-crore capex programmes. These included two brownfield projects; debottlenecking and backward integration programme to minimise dependence on supplies of raw materials from China; and upgrading utilities and quality control infrastructure.

A part of the brownfield project at DC-SEZ Unit at Choutuppal, Telangana and DCV-SEZ Unit at Chippada, Andhra Pradesh have commenced operations during the year, qualification batches are completed and awaiting regulatory approvals. A part of the backward integration, debottlenecking and utility expansion projects have also come into utilization during the year.

“For the rest of the capex programmes, our contractors are experiencing delays due to shortages of technicians and also delays by equipment vendors because of the disruptions caused by COVID-19,” he said, adding the company is closely coordinating with contractors and vendors for the expeditious completion of the projects. It expected the projects to be completed and come into utilization by end of current fiscal.