Anti-smoking market in India is estimated to be around Rs. 720 crore. Many doctors are prescribing drugs to help patients get rid of the habit. Awareness about tobacco-related cancer has also prompted many people to take up anti-smoking pills. Elder Pharma plans to enter the nicotine replacement therapy, or anti-smoking segment, with chewable jelly cubes. These chewable jelly cubes reproduces the sensation of tobacco chewing while providing nicotine to addicts. Other companies which are already present in the anti-smoking segment are
Sun Pharmaceuticals, Pfizer, Cipla and GSK. These companies have products either in the form of trans dermal patches, chewing gums, inhalers, nasal sprays or lozenges.

The current market for prescription drugs is around Rs.200 crore, the remaining sales are from the over-the-counter products. According to Alok Saxena, director of Elder Pharma, the company is planning a revenue of around Rs.18 to 20 crore from this product in three years. The operating margin on the product is likely to be between 18-20 percent, he added. The company’s revenue is Rs 702.4 crore in the year ended March 2010, with earnings before interest tax, depreciation and amortisation, or EBITDA, at Rs 109 crore and net profit of Rs 55.3 crore.

Elder Pharma has signed an agreement with Gelnova Laboratories to manufacture the product as they do not have the technology to make the product in the gel form. The product will be launched in 3 strengths- 1mg, 2mg and 4 mg and in two flavors mint and pan masala. It is designed to last for around 30 to 40 minutes in the mouth.

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