Vol. 3, No. 9 September, 1999

Number	Subject
030901	OPPI President Stresses on Innovation and Knowledge
030902	Ranbaxy Receives Payment from Bayer AG for Ciprofloxacin NDDS
030903	Madison Square Holdings Denied Permission by FIPB
030904	Indian Companies Tie-up in UAE for Manufacturing
030905	FICCI Against Wholly-owned Pfizer Subsidiary
030906	Glenmark Plans Initial Public Offering
030907	Nicholas Piramal to Buy Hoechst Unit at Mulund
030908	Government to Allow MNCs Bringing Patented Technology
030909	Dabur to Conduct Phase One Trials of Anti-Cancer Molecule
030910	Zandu Defers Issue of Instruments
030911	Cheminor Schedules Production of 25 Patent-Free Products

030901 OPPI President Stresses on Innovation and Knowledge

Speaking at the annual general meeting, the president of the Organisation of Pharmaceutical Producers of India stressed that knowledge and innovation are vital to the future survival of the pharmaceutical industry. He stated that policies of the future would have to focus on the need for better quality and better standards. He also stressed on the need to create an operational environment which would encourage companies to utilise greater resources towards innovation and knowledge creation. He also added that innovation and protection of Intellectual Property Right (IPR) were important for the survival of the pharmaceutical industry.

030902 Ranbaxy Receives Payment from Bayer AG for Ciprofloxacin NDDS

Ranbaxy has received US$ 10 million from Bayer AG as the signing amount for exclusive development and global marketing rights for an oral once-a-day dosage form of the anti-infective Ciprofloxacin. It will also receive success related milestone payment in excess of US $ 50 million over a two-year period depending on the speed and scope of development. The total payment will amount to about US $ 65 million.

Ranbaxy will receive royalty payments of about 10 per cent of sales of the product in various countries which will be valid for a period of 20 years from the date of the patent. Ranbaxy also has the marketing right for India and the CIS. The milestone payments will depend on development, submission of data and regulatory approvals.

030903 Madison Square Holdings Denied Permission by FIPB

Reckitt & Coleman's wholly owned subsidiary, Madison Square Holdings' plans to manufacture OTC pharmaceuticals in India has not been given approval by the Foreign Investment Promotion Board (FIPB) because it was not in consonance with the country's drug policy. However, the board has approved Madison's proposal to manufacture soaps and preparation for hair. The subsidiary is aiming at the hair-care, fabric-care, polish and toiletries segments.

030904 Indian Companies Tie-up in UAE for Manufacturing

Companies in the United Arab Emirates (UAE) are in talks for joint-ventures with Indian companies for setting up pharmaceutical projects worth $ 100 million. The market is currently dominated by multinationals and these projects are aimed at import substitution. At present there is only one company, Julphar, which has a small share of the pharmaceutical market in the country.

UAE businessmen are holding talks with Ranbaxy for technical support to set up operations in their country. Kilitch Drugs of India is collaborating with Al Safwa Drugs FZE for a $ 15 million plant at the Jebel Ali Free Zone. Kopran is into a collaboration with Dubai Investments for a $ 15 million project, Global Pharma, which is nearing completion. Kopran's stake is 39 per cent in this project. The plant will manufacture both bulk drugs and dosage forms. The UAE pharma market ($ 183.7 million) is the second largest after the Saudi Arabian pharma market ($ 800 million) in the Arabian Gulf.

030905 FICCI Against Wholly-owned Pfizer Subsidiary

The Federation of Indian Chambers of Commerce and Industry (Ficci) has stated that it would request the industry ministry to withdraw the FIPB approval to Pfizer for setting up a wholly-owned subsidiary in India. Setting up a wholly-owned subsidiary would, it is alleged, affect the prospects of Pfizers's existing partner in which it holds a minor stake. Ficci claims that it would affect the prospects of small investors and mutual funds and create a backlash against foreign direct investment.

It is feared that wholly-owned subsidiaries of foreign multi-nationals setting up operation in India would use their patented products in direct competition with their existing collaboration in India. Thereby the wholly-owned subsidiaries will gain market share at the expense of the joint-venture where the multi-national is a minor shareholder.

030906 Glenmark Plans Initial Public Offering

The promoters of Glenmark Pharmaceuticals are planning to dilute their stake in the company from around 85 per cent to 60 per cent through an initial public offering or a placement with a private equity fund by December 1999. The money will fund a research and development centre in the Thane-Belapur area which will come up by September 2000 at a cost of Rs 30-50 crore. The company is also in talks with two Japanese companies for acquisition of stake in it, and licensing of its products to them in return. A facility for US FDA grade formulation is coming up at Sinnar near Nasik at a cost of Rs 15 crore. The company also has plans to reactivate a Canadian subsidiary and make a foray into the European market through Portugal.

030907 Nicholas Piramal to Buy Hoechst Unit at Mulund

Nicholas Piramal India (NPIL) has entered into talks with Hoechst Marion Roussel (HMR) to acquire a production unit within the latter's production facility at Mulund, in North Mumbai. Reportedly NPIL is also interested in acquiring the brand Haemaccel which is being manufactured by this facility. NPIL had earlier acquired the Quest Institute of Life Science from HMR for Rs 20 crore which is located near the production facility. Reportedly HMR is keen to sell off its facility at Mulund, which is within city limits.

030908 Government to Allow Multi-nationals Bringing Patented Technology

The government has decided to allow companies to set up wholly-owned subsidiaries which would bring in proprietary or patented technology into the country. Projects fully funded by foreign direct investment would be allowed in such cases.

The policy is aimed at bringing in high technology while at the same time protecting the intests of the multi-nationals. This is of particular interest to pharmaceutical multi-nationals who are targeting the Indian market.

030909 Dabur to Conduct Phase One Trials of Anti-Cancer Molecule

The Drug Controller-General of India has permitted Darbur to conduct phase one clinical trials for an anti-cancer molecule. This is the first new chemical entity developed by the Dabur Research Foundation to reach the clinical trial stage. The company has successfully conducted efficacy and toxicity tests on animals in the pre-clinical trial stage. The product, derived from a natural source, will now undergo a three-phase clinical trial to establish safety, efficacy and toxicity levels in humans. Nothing is known about the company's future plans for this product. It is believed that Indian companies enter into a licensing arrangement for the product with foreign companies for further development.

030910 Zandu Defers Issue of Instruments

The management of Zandu Pharmaceutical Works as decided to defer a special resolution for the issue of instruments at its 80^th annual general meeting. Rumours of a rift among the promoters of the company has also been clarified. The company has become the first in India to have a new product approved for investigative trials in the US. Trials of its HP 200, a plant derivative drug to treat Parkinson's, will be carried out on around 500 US patients.

030911 Cheminor Schedules Production of 25 Patent-Free Products

Cheminor Drugs, a Dr Reddy's group company has scheduled production of 25 drugs which will go out of the purview of patents. With a view to export the generic products being released from patent requirements, the company's Bachupalli plant has been inspected by the US Food and Drug Administration. According to reports, a number of specialist companies are outsourcing synthesis and production of drugs whose patents have expired.

RESULTS INNOVATOR - THE BENCHMARKING TOOL
Comp.	Acc. Year	Latest Annual Result		Quarter 1		Quarter 2		Half Year		Quarter 3		Quarter 4
		Sales (Cr.)	Net (Cr.)	Sales (Cr.)	Net (Cr.)	Sales (Cr.)	Net (Cr.)	Sales (Cr.)	Net (Cr.)	Sales (Cr.)	Net (Cr.)		Sales (Cr.)	Net (Cr.)
Lupin Labs.	Apr.99 Mar.00	-	-	190	12.86
% (+/-)		-	-	+2.3	+30
Orchid Chem.	Apr.99 Mar.00	-	-	-	-	-	-	175.3	19.21
%(+/-)								+33	+9
Pfizer	Dec.99 Nov.99	-	-	-	-	-	-	-	-	76.97	9.87
% (+/-)										+26	+8
Abbott Labs.	Apr.99 Mar.00	-	-	-	-	58.24	2.88
% (+/-)						+8	+73
Pun. Chem.	Apr.99 Mar.00	-	-	-	-	19.18	0.09	37.67	.19
%(+/-)						-13	-91	-5	-90
Unichem Labs.	Apr.99 Mar.00	-	-	-	-	56.38	4.88
%(+/-)						+8	+35
Ranbaxy Labs.	Apr.99 Mar.00	-	-	-	-	409.7	77.9
%(+/-)						-1.6	+54
Glaxo	Jan.99 Dec.00	-	-	-	-	-	-	-	-	248	16
%(+/-)										+32	-26
Shashun Chem.	Apr.99 Mar.00	-	-	-	-	42.89	4.55
%(+/-)		165.7	7.50			-1	+82
Suven Pharma.	Apr. 99 Mar.00					9.73	1.02
		30.98	2.50			+13	+54
Neuland Labs.	Apr.99 Mar.00	65.97	2.1	-	-	18.51	n.a.
%(+/-)						+8	n.a.
Cipla	Apr.99 Mar.00	617.2	114.9	-	-	199.7	35.75
%(+/-)						+23	+14