Vol. 2, No. 11 November 1998
NumberSubject
021101Hoechst Marion in Talks to Sell Thane Facility of Roussel
021102Dr Reddy's Laboratories Acquires Dolphin Brands
021103Hoechst Marion Roussel Launches Allegra
021104Excise Department Looking into Bulk Drug Prices
021105Wockhardt Offers Voluntary Retirement Scheme for Bhandup Workers
021106IDMA and OPPI Demand Total Abolition of Drug Price Control Order
021107SOL Pharma on the Way to BIFR
021108Brand Value of Dr Reddy's Brands
021109The Boots-Piramal Tie-up Will Develop Partnerships for Technology
021110Sun and Searle in Race for Take-over of American Remedies



































021101 Hoechst Marion in Talks to Sell Thane Facility of Roussel

Orchid Pharmaceuticals and Chemicals, based in Chennai is conducting talks to take-over Hoechst Marion Roussel's (HMR's) plant located at Thane, near Bombay. This plant originally belonged to Roussel, which has been merged with Hoechst Marion to form HMR. Reportedly, the price expected is Rs 15 crore. HMR is also considering offers from smaller firms which could buy the unit and carry out contract manufacturing for it.

021102 Dr Reddy's Laboratories Acquires Dolphin Brands

Dr Reddy's Laboratories (DRL) has bought five brands and the marketing and manufacturing right for a sixth from Dolphin Laboratories, based in Calcutta. Reportedly, the consideration is less than twice sales of the products. DRL is not taking on the sales force of Dolphin. Dolphin will manufacture the products for DRL on a contract basis. DRL expects sales of Rs 25 crore from the acquired brands in the first year. The deal will put DRL in a position of leadership in the haemostatic drugs segment.

021103 Hoechst Marion Roussel Launches Allegra

Hoechst Marion Roussel (HMR) is launching a non-sedating anti-allergenic drug, Allegra, which will be available in India from the first week of November. This drug was developed by HMR in the US and has been marketed in the US, UK and several other European countries. The product will cost a maximum retail price of Rs 30 for a pack of six tablets of 120 mg each and Rs 38 for six tablets of 180 mg each.

021104 Excise Department Looking into Bulk Drug Prices

The central excise department is looking into the pricing policies of bulk drug manufacturers to see whether the drug manufacturers are selling bulk drugs at prices much below the DPCO price, thereby paying lower duties to the department. According to the central excise law on valuation, the maximum price of any category of goods sold by a manufacturer will be taken as the assessable value of the goods. The problem arises because recently with an increase in bulk drug production, prices in the local market fell below the DPCO prices.

021105 Wockhardt Offers Voluntary Retirement Scheme for Bhandup Workers

Wockhardt has trimmed the workforce of its subsidiary Merind, by 30 per cent, by offering a voluntary retirement scheme. Reportedly, around 120 workers among the 240 unionised staff have accepted the VRS and a similar offer is being worked out for executives. This scheme is expected to cost the company around Rs 6 crore. The company has also closed down the sterile formulation facility at the Bhandup plant producing Decdan, a formulation of dexamethasone steriod and hydroxycobalmine. The company will now concentrate on Merind's main revenue earner Vitamin B-12 and a small chemical production facility. Wockhardt is also scheduled to commission Wockhardt Hospital and Kidney Institute at Calcutta in 1999.

021106 IDMA and OPPI Demand Total Abolition of Drug Price Control Order

The Indian Drug Manufactures' Association and the Organisation of Pharmaceutical Producers of India, together constituting about 80 per cent of the country's pharmaceutical production, has demanded the total abolition of the Drug Prices Control Order (DPCO). Reportedly, this is the first time the two associations have shown solidarity on this demand. The concept introduced thirty years ago has outlived its use and has no relevance in the present competitive environment, they maintain. Almost 74 drugs now under price control are openly available in the country either indigenously or through imports. Therefore they feel the Order should be scrapped. The drugs can be decontrolled in stages, with 17 bulk drugs being decontrolled first followed by 19 drugs every six months.

021107 SOL Pharma on the Way to BIFR

SOL Pharma with accumulated losses of around Rs 166.52 crore is, reportedly, being referred to the Bureau of Industrial & Financial Reconstruction (BIFR) to inject funds and to revive its operations. Its net worth has been completely eroded and the company has been accumulating losses over the years. The bulk drug unit was affected by the rising cost of imported raw material and depreciation of the Rupee. Besides stiff competition in the domestic market led to unrealistic price cuts.

021108 Brand Value of Dr Reddy's Brands

Dr Reddy's brands have been valued at Rs 281 crore in its latest annual report for the year 1997-98. The company has calculated the brand value using the earnings multiple approach. The factors considered were brand earnings or cash flows and brand strengths. The brand value was placed at Rs 201 crore last year.

021109 The Boots-Piramal Tie-up Will Develop Partnerships for Technology

Reportedly, Boots Piramal Healthcare, the new joint-venture between Nicholas Piramal and the UK-based multinational Boots Healthcare International is committed to developing partnerships with leading healthcare companies to bring in technology, accelerate new product research and develop opportunities for export. Nicholas Piramal currently has an arrangement to distribute three Boots brands, which will cease with the formation of the joint-venture. Boots has regained control of its Strepsils brand in India last year, and was on the look out for a partner to establish a presence in India. Boots main brands include Nurofen, Strepsils and dermatological brands like Lutsine, Onagrine and Curatoderm.

021110 Sun and Searle in Race for Take-over of American Remedies

The race for take-over of Chennai-based American Remedies (ARL) has started with two contenders, Sun Pharmaceuticals and the RPG group's Searle (India). Ranbaxy Laboratories and Nicholas Piramal have, reportedly, denied any interest. Sun is interested in ARL's product mix, which is perceived to have considerable potential. It includes Becozine, a vitamin-mineral pill; Antoxide, a free radical scavenger; Cefalong, a cephalosporin; Ampilong an ampicillin and Gris-OD, a griseofulvin formulation. Reportedly, Sun's bid will come in for labour opposition because of its take-over and shifting of Dadha's units to other states.