Vol. 2, No. 6 June 1998

THIS ISSUE IS SPONSORED BY:

020601 HOECHST MARION UNION OPPOSES MERGER WITH ROUSSEL

The Hoechst Marion Roussel (HMR) union is opposing the merger of HMR with Roussel India (RIL) on the grounds that the latter is a loss-making company. The union has claimed that the profit-before-tax of Rs 2.55 crore of RIL was created through over-valued stocks and last minute sales.

RIL's representatives maintained that the projected losses of around Rs 14 crore to Rs 15 crore for 1997-98 as mentioned in different documents was not incurred because of the good performance of the company during this period. Also the voluntary retirement scheme cost the company only Rs 5.7 crore instead of the expected Rs 8 crore.

020602 KOPRAN IN TIE-UP FOR FORMULATIONS FACILITY IN DUBAI

Kopran is tying up with Dubai Investment Corporation for a formulation manufacturing facility in the UAE at an investment of US $ 15 million. The new company will manufacture life-saving drugs, antibiotics, anti-ulcerants and cardio-vasculars. The plant is expected to be operational by January, 2000.

The company expects to generate a sales income of Dhirams 36 million in the first year and to reach a target of Dhirams 150 million in five years.

020603 LUPIN IN TIE-UP TO MARKET IN RUSSIA

Lupin Laboratories has entered into a marketing tie-up in Russia for anti-tuberculosis and cephalosporin formulations. To be called Lupin Pragati Ltd, Lupin will be the major shareholder. Lupin Pragati will manufacture anti-TB products with bulk drugs being sourced from Lupin Laboratories.

The joint venture intends to utilise the distribution channels of Pragati and then recruit its own field staff. The company intends to cover the areas around St Petersberg, Moscow and the Urals. Initially Lupin is investing a token US $ 20,000 which will be increased to US $ 2,50,000 when the manufacturing facility is set up. Already Lupin's exports to Russia is worth US $ 15 crore which will increase to US $ 20 crore in the first year of the joint venture.

020604 ROCHE WITHDRAWS POSICOR

Roche's blood pressure and angina drug Posicor has been withdrawn from the market because it interacts poorly with other medicines. Clinical trials also found Posicor no more effective than a placebo in treating congestive heart failure.

Also the US launch of its block-buster anti-obesity drug Xenical could be delayed. Posicor was expected to reach sales of US $ 338.1 million to US $ 540.9 million in annual sales. It accounted for about one to three per cent of the total sales of the group.

020605 ZYDUS-BYK COLLABORATION FOR INTERMEDIATES

The Zydus group has entered into an equal partnership joint venture with Byk Gulden of Germany to manufacture key intermediates for the bulk drug Plantoprazole. The firm to be known as Zydus-Byk will be set up with an investment of Rs 20 crore and will export its entire production.

020606 IPCA NET PROFIT INCREASES BY 14 PER CENT

Ipca Laboratories has reported a 14 per cent increase in net profit at Rs 19.45 crore against Rs 17.06 crore last year. The company has declared a total dividend of 50 per cent.

020607 NOVARTIS (INDIA) NET PROFIT JUMPS BY 106 PER CENT

Novartis India has reported an increase of 106 per cent in net profit from Rs 18.6 crore to Rs 38.2 crore. The company has declared a 40 per cent dividend for 1997-98. The company claims that the rise in net profit was due to synergy realised from integration of all business operations.