According to industry estimates the US market grew by a meagre 1-2% in 2009, in contrast to the 14-15% growth witnessed in emerging markets in Latin America, Asia, as the governments increased their spend on healthcare and broader public and private healthcare funding, in developing countries.
Currently, Plethico Pharma sells products like anti-oxidants, vitamins, etc of Natrol, a US branded nutritional products company, which it acquired for $81m in 2007.
For the INR10bn Plethico, which is anticipating per annum growth of 15-18%, about 90% of its revenues come from Commonwealth of Independent States (CIS), Europe, Southeast Asia, Gulf Cooperation Council (GCC), Latin America, as well as Africa and the US.
The cough and cold segment in US is estimated at $400m, even if Plethico can capture about 5% of that market, it would aid its growth.
Sanjay Pai, CFO of Plethico Pharma, said: “We had earlier anticipated a full-scale entry into US with Plethico’s products in early 2010. But now there aren’t too many encouraging signs from that market. Recessionary trends in the US have not yet fully cleared out and the market has not picked up strongly.
“Once there is a strong revival in the US, we would look to launch our own products, especially those in the cough and cold segment, and some food supplements,” reported dnaindia.com.