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 060901 Becton to Export Insulin Syringes to Asia from India

Becton Dickinson India, a fully-owned arm of the US-based Becton Dickinson is in the process of exporting insulin syringes to major markets in the Asian region. It will be exporting insulin syringes to China, the Philippines, Indonesia and Thailand. Singapore is being targeted at a later date. Becton expects export revenues to triple to about Rs 15 crore in about two to three years. The turnover of the company is Rs 120 crore at present and is expected to grow around 25 per cent in the next fiscal year. The company intends to focus on biosciences and clinical laboratory solutions for growth. The company is introducing its auto-disable technology of administering insulin in India. Soloshot is a single use syringe and Uniject is a single use, pre-filled injection device. The company is persuading many vaccine producers to use their proprietary technology in administering vaccines.

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Ranbaxy Laboratories is planning to introduce a slew of frontier biotech drugs in the Indian market in the fourth quarter of 2002-2003. For this Ranbaxy has entered into licensing agreements with the Chinese biotech major Anhul Anke Biotech and Cheil Jedaugh of Korea. These agreements will enable Ranbaxy to sell products such as interferon alpha 2b, erythropoetin and human GSCF in India.

In another related development Dr Reddy’s Laboratories’ loss of the Ciprofloxacin patent challenge vis-à-vis Bayer AG could prove to be a gain for Ranbaxy. Ranbaxy, in a deal (including royalty on sales) with Bayer had introduced the once-a-day dosage of Ciprofloxacin in the US. This ruling gives Bayer more time to switch its twice-a-day Ciprofloxacin users to once-a-day Ciprofloxacin users. Bayer has patent protection over Ciprofloxacin till December 2003.

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Reportedly, Lupin Laboratories has filed an investigation new drug application (IND) with the Drug Controller General of India. This application is to conduct phase-1 clinical trials on "amigra nasal spray" a new anti-migraine herbal formulation it has developed. This is the first IND application submitted by Lupin since it commissioned its new drug research facility at Pune about a year ago.

The herbal drug would go through the clinical trials as rigorously as a new synthetic chemical entity to make it acceptable to foreign regulatory authorities like USFDA. This is a novel procedure since it is a single plant-based formulation pharmacological and toxicity studies of which have been completed. However the company went ahead with clinical trials in spite of the fact that Indian laws do not require mandatory pre-marketing analysis according to law.

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Ranbaxy Laboratories has refuted allegations that it has developed the generic version of Augmentin (GSK’s blockbuster antibiotic) using a strain of stolen bacteria. GlaxoSmithKline (GSK) had alleged that Novartis, Teva (an Israeli company) and Ranbaxy were using bacteria stolen from GSK to manufacture the generic version of Augmentin. Augmentin is GSK’s second largest product by sales and lost patent protection in the US in May. Novartis’ subsidiary Geneva Pharmaceuticals launched a generic version of the drug in July.

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Cipla is negotiating with South Africa mining firm Anglo American to supply it with Anti-AIDS drugs. Anglo Amercan is largest company in South Africa and about 25 percent of its 134,000 employees are HIV-positive. This comes an year after Cipla formulated an offer to supply poor countries with triple-drug anti-AIDS drugs at $ 350 per patient per year (one-thirtieth the price charged by multinationals). This had triggered price cuts among multinational companies. Anglo American plans to distribute the drugs to its employees. Reportedly, the company is also approaching Ranbaxy to see what they could offer in this segment.

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Ranbaxy has announced that it has received the go ahead from the US Food & Drug Administration to manufacture and market Terazosin Hydrochloride capsules (1 mg and 2 mg, 5 mg and 10 mg) which is used to treat symptomatic benign prostatic hyperplasia (BPH). The formulation is the therapeutic equivalent of Abbott Labs’ (Pharmacia’s) Hytrin capsules. Terazosin Hydrochloride is also used to treat hypertension.

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Around five months after buying ICI’s pharmaceutical division, Nicholas Piramal (NPIL) has completed its integration with itself. By squeezing manufacturing cost, supply chain management and administration the earnings of ICI’s pharmaceutical division is expected to double its net profit to Rs 24 crore. Sales will be around Rs 70 crore this year which is equal to the cost of acquisition of the business.

NPIL had acquired ICI’s pharma division for Rs 70 crore in March last year, basically to consolidate its strength in the high-growth cardiology segment. In the process of integration NPIL has cut ICI’s dealing with 17 clearing and forwarding (C&F) agents. The erstwhile ICI brands now use NPIL’s C & F agents thereby reducing commission and freight costs. NPIL has also stopped manufacturing at ICI’s Ennore facility and is planning a voluntary retirement scheme for its 112 workers which will cost Rs 6.5 crore.

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Matrix Laboratories is in the process of buying a controlling stake in Ranbaxy’s subsidiary Vorin Laboratories. This is the second acquisition of Matrix after it took over Shriram Group’s Medicorp Technologies this year. Matrix specialises in anti-depressants and anti-asthmatic drugs. Matrix will take control of these companies and both Ranbaxy and Shriram Group will remain as minority shareholders. N Prasad formerly managing director of Vorin Laboratories heads Matrix.

Vorin’s mainstay is quinolones and animal health products. Medicorp’s main products are anti-virals and anti-bacterial drugs. For the financial year ended March 2002 Matrix has notched a profit of Rs 7.1 crore on sales of Rs 93.2 crore. Vorin has registered a net profit of Rs 1.3 crore on sales of 157 crore for the year ended December 2001.

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The public sector Indian Drugs and Pharmaceuticals (IDPL) has given an ultimatum to its staff to decide about the voluntary retirement scheme (VRS) within three months or face retrenchment. The ministry of chemicals and fertilisers has said in a directive that there won’t be another chance for the employees to opt for VRS. The directive has the concurrence of the finance ministry and department of public enterprises.

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Wyeth Lederle has ceased manufacturing of finished dosage forms at its facility at Ghatkopar, Mumbai, and shifted it to a newly commissioned plant in Goa. This has been prompted by the high wage cost in Mumbai. This has resulted in the employee cost coming down from 14.8 per cent to 13.3 per cent. It projects half of its total manufacturing to be undertaken by this unit in the nearest future. Around 100 employees have accepted voluntary retirement.

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In another corporate re-organisation, Nicholas Piramal has closed its Deonar plant and terminated the service of 130 employees. The termination notice mentioned that it has sold its "manufacturing activities’ to a contract manufacturing company, i.e., Encore Quality Management.

It has sold the equipment, machinery and land where the factory stood but has retained the research laboratory also situated nearby. The reason cited by the company is that it is unviable to continue operations from the plant as the buyer of the plant did not require old employees. Nicholas Piramal had earlier announced a VRS scheme but only 91 employees accepted it. The employees union had gone to labour court which had decided in the company’s favour.

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The Max Group is in the process of selling the bulk drug business of Max Pharma to Jubilant Organosys (formerly: Vam Organics) at a cost of Rs 69 crore. Around Rs 62 crore will be the actual receipt of Max while the rest will be transaction cost. Rabo India Finance has structured the deal which will help Jubilant to get an advantage in their proposed bulk drug business.

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In yet another restructuring German Remedies has informed the Bombay Stock Exchange that it intends to shut its manufacturing facility in Andheri, Mumbai which employs 574 workers. It has offered VRS to its employees which will cost the company over Rs 30 crore. Of late many pharmaceutical majors have been shutting their facilities in Mumbai because of the steep labour and overhead costs involved. Thus German Remedies joins companies like: GlaxoSmithKline, Aventis Pharma, Nicholas Piramal, Wockhardt, Wyeth Lederle, etc.

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 060914 Government Slashes Prices of Vitamin C

The government of India has slashed the price of bulk drug Vitamin C. The National Pharmaceutical Pricing Authority lowered the price of Vitamin C plain and coated from Rs 526 per kg at present to Rs 423 and Rs 419 respectively (i.e., plain and coated). The price of sodium ascorbate has been lashed from Rs 592 per kg to Rs 466. The NPPA has also increased the price of anti-amoebic bulk drug iodochloro hydroxy quinoline from Rs 740 per kg to Rs 764 per kg. Sarabhai Chemicals is India’s largest manufacturer of Vitamin C while EastIndia Pharma and Atul are manufacturers of iodo-chloro hydroxy quinoline. The Indian multi-vitamin market is estimated at Rs 1,100 crore.

The multi-vitamin market is dominated by multinationals like: GlaxoSmithKline, Pfizer, Pharmacia, Alembic and Wyeth Lederle.

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 060915 Growth of Indian and Multinational Companies for the period Jan. – May 2002

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