| Pharma major Nicholas Piramal India (NPIL) has entered into a definitive agreement with Mumbai-based Khandelwal Laboratories (K-Lab) to acquire its Anafortan and CEFI drug brands for Rs 116 crore.
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| Under the agreement, K-Lab will allow NPIL the use of certain patents with non-compete assurances for the two cefixime and Camylofin based drugs. The two drug groups generated revenues of Rs 49.1 crore, with operating margins of Rs 20.7 crore for the financial year ended March 31, 2008.
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| NPIL Chairman Ajay Piramal said, “CEFI and Anafortan offer unique therapeutic value, which we hope to offer to patients across India through our national sales and distribution network.”
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| CEFI (cefixime) is a third generation cephalosporin antibiotic and K-Lab’s CEFI group is marketed in India in nine dosage forms. Its CEFI-XL and CEFI-OD, are based on extended release and once-a-day drug delivery systems.
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| K-Lab has won patents from the Indian Patent Office for these delivery systems. The CEFI group had revenues of Rs 26.2 crore for the year ended March 31, 2008, said sources.
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| According to data from market research agency ORG-IMS, the cefixime-based drugs segment is worth Rs 624.6 crore and is growing at 25.4 per cent annually.
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| Anafortan (Camylofin) is an anti-spasmodic drug for treating stomach cramps and ulcers. K-Lab’s Anafortan group consists of six Camylofin-based formulations that are said to have no side-effects even for infants and pregnant women.
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| The drug had revenues of Rs 22.9 crore for the year ended March 31, 2008. The Camylofin-based drugs market grew at 13.5 per cent last year.
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| Nicholas Piramal is revamping its corporate identity and restructuring its divisions to grow domestic business. The company’s performance has suffered in the domestic market, in recent months, due to a shortage of codeine, the principal ingredient for its flagship cough syrup brand Phensedyl.
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| During the last year, pharma and biotech company Wockhardt Limited acquired Dumex India Pvt Ltd along with the firm’s products Protinex and Farex. Kopran’s flagship cough and cold syrup Smyle was sold to Maneesh Pharma.
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| Sales of NPIL’s domestic branded formulations grew 15.6 per cent at Rs 340 crore in the third quarter ended December 31, 2007. NPIL also bought a small pharmaceutical company in Bangalore recently and hived off its blood glucose manufacturing business into a separate company.
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| NPIL shares gained four per cent to close at Rs 320.25 on the Bombay Stock Exchange today. |
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