Vol. 3, No. 5 May, 1999

Number	Subject
030501	Novartis India to buy Optrex's Clearine
030502	Becosule Brought Under Price Control
030503	Cipla Registers 13 Per Cent Increase in Net Profit
030504	Wockhardt Demerging Pharma and Non-Pharma Businesses
030505	Ranbaxy's Quarter Four Profit Drops
030506	Pharmaceutical Stocks Outperform the Sensex
030507	Sun Pharma Allotted Equity in US Firm Caraco

030501 Novartis India to buy Optrex's Clearine

Novartis India is in the process of buying Optrex Ltd's brand named 'Clearine,' which will be its first acquisition in India. Optrex is a part of the United Breweries group. Clearine has sales of Rs 2 crore and is used as a cooling agent in case of eye irritation. CibaVision is the eyecare division of Novartis and at present markets contact lenses and contact lens solutions.

030502 Becosule Brought Under Price Control

The biggest pharmaceutical brand in India, Becosule, has been brought under price control by the National Pharmaceutical Pricing Authority. Pfizer, the original owner of the brand had assigned the brand to a small scale unit in Pune, Duchem, to take the product off price control. Becosule has sales of Rs 81 crore and at present sells for Rs 11.53 for a strip of 10 capsules. With price control it will sell for Rs 7.90 exclusive of excise.

030503 Cipla Registers 13 Per Cent Increase in Net Profit

Cipla has registered a 13 per cent rise in net profit at Rs 115.03 crore for the year ended March, 1999. The company's net sales are Rs 616.77 crore which has increased by 20 per cent compared to the previous year's sales of Rs 514.43 crore.

030504 Wockhardt Demerging Pharma and Non-Pharma Businesses

Wockhardt is demerging its pharmaceutical and non-pharmaceutical businesses. Pharmaceutical and veterinary products will continue in the existing company which will retain the name of Wockhardt. A new company will be spun off which will manage the intravenous, nutrition and agrochemical businesses. The new company is yet to be named and existing shareholders of Wockhardt will get one share in the new company for every share held. The new company will have the same shareholding pattern as Wockhardt with Khorakiwalas holding 60 per cent of the equity. However, the subsidiary Merind will stay with Wockhardt after the demerger.

030505 Ranbaxy's Quarter Four Profit Drops

Ranbaxy Laboratories' quarter four (ended March 1999) profit after tax has dropped by 16.1 per cent (from Rs 57.80 crore to Rs 48.50 crore) compared to quarter four (ended March 1998). Sales were down in the quarter by 6.6 per cent from Rs 387.60 crore to Rs 362.20 crore. A significant fall was registered in the export sales (13 per cent) while domestic sales fell marginally (0.5 per cent). During the quarter the company launched six new products in the anti-infective, cardiovascular, central nervous and orthopaedic segments. The full impact of these launches will be registered in the latter part of the current year. In this quarter there was a lower realisation from export of bulk drugs especially Penicillin-based drugs and Cefaclor. Also prices of Ranitidine has been severely affected in the UK and the USA.

030506 Pharmaceutical Stock Outperform the Sensex

Pharmaceutical stocks continued to perform well on the stock markets compared to core sector stocks. The market capitalisation of Aurobindo Pharma shot up from Rs 45 crore to Rs 530 crore. The company announced a 1:1 bonus. Rhone Poulenc's capitalisation rose by 188 per cent, Burroughs Wellcome by 160 per cent and Cipla by 102 per cent. The Sensex lost 7 per cent during this period.

030507 Sun Pharma Allotted Equity in US Firm Caraco

Sun Pharma, in a first of its kind, has been allotted equity in the US firm Caraco in exchange for formulatory and manufacturing technology for three drugs. Caraco manufactures and distributes generic and branded pharmaceuticals for the prescription and over-the-counter product markets. Sun Pharma which has already invested US $ 7.5 million (39.24 per cent holding) can increase its equity holding to 45.72 per cent.