Nicholas Piramal Ties Up With Reckitt & Colman

NICHOLAS PIRAMAL (NP), Reckitt & Colman plc (RC) and Reckitt & Colman India (RCI) have reached an agreement to form a new joint venture called Reckitt Piramal to manufacture and market over the counter products. Nicholas Piramal and Reckitt & Colman wil hold 40 per cent each in the new company while the rest 20 per cent will be held by Reckitt & Colman India. The products to be developed include; RCI's Dettol and Dispsirin; NP's Saridon, Polycrol and Rennie (both for indigenstion) and RC's Gaviscon (heart burn). Fybozest (lowers cholesterol), Lemsip (cold and flu). The new company will manufacture these products at a transfer price at RCI's and NP's existing facilities. However, there will be no transfer of brands. The arrangement is supposed to buttress RCI's distribution skills with NP's detailing and is seen as a result of the rapid liberalisation of the Indian pharmaceutical industry.
Schien Buys Stake in Cheminor

THE $ 500 MILLION US-based brand generics producer Schien reportedly has bought 18 per cent stake in the Dr. Reddy's group company, Cheminor Drugs. The deal for three million shares has been struct at $ 15 million, i.e., $ 5 a share. Schien is now the second largest shareholder in the company, after Dr. Reddy's group. Cheminor already has an arrangement with Schien through which its generic products are distributed in the US. The arrangement will also give Cheminor the marketing rights for Schien's nearly 400 products in India. For the year ending March 1997. Cheminor had a turnover of Rs 130.48 crore and a net profit of Rs. 7.44 crore.
European Union Alleges Subsidies for Indian Pharma Producers

THE EUROPEAN Union has sent a questionnaire to 33 exporters alleging that they, makers of three antibiotics, are the recepients of upto 30 per cent government subsidies. The government of India and these exporters who include: Ranbasy, Kporan, Orchid, Torrent, Lupin, Vitara, Aurobindo and Sun Pharma will fight the case in Brussels. The Indian Drug Manufacturers Association has alleged that several companies who do not manufacture the product have also been sent questionnaires. The targeted companies are finalising the law firm that will defend them against the charges.
Warburg Pincus Acquires Stake in Nicholas, at Last

AFTER HAVING rejected the E M Warburg Pincus application to acquire 9.9 per cent stake in Nicholas Piramal on the ground that no Nicholas Piramal supporting resolution accompanied the application, the government has now approved an application submitted by Nicholas Piramal supported by a resolution by its board. The government had laid the condition that application for acquiring a stake in an Indian company by a foreign entity should come from Indian companies themselves so as to protect Indian companies from hostile take-overs by foreign ones.

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