In q4Fy15 con call Management provided below statements
- For development and filing Rs 4 to 4.5 cr cost incurred per ANDA.
2.They was asked how much of R&D would actually get expensed off?
Management : They will write-off 100% The normal R&D expenditure and the routine R&D expenditure, For
new product development it will be capitalized and when revenue will start generating from that particular ANDA,then they will start write-off .
In the Q4 FY16 concall , Management clarified followings…
Regrading RnD budget on FY17
Managemnt : FY17 Rnd cost can split it up into two parts, one is APIs and the
other is the formulation development. Formulation development is going to be really high
because they are doing formulation development both in India and in the U.S. and they expect
anything upwards of Rs. 100 crores to Rs. 112 crores for formulation development.
Why they have capitalized entire Rnd Expense ,
Management : Because theyhave not started production, so entire thing will be capitalized. Commercial
production start only after getting approval of ANDA. So all theyspend on formulation
development will be capitalized, what is spent on API R&D will be written off. That is the
accounting policy they have been following.