Cipla Ltd, the Rs 369-crore pharma company, is adding eight new products to its OTC range for the export market.
Amar Lulla, Cipla director, said the company would introduce pain killers, calcium supplements, multi vitamins, energiser drinks and sugar substitutes.
The new introductions are expected to contribute Rs 10 crore to the companys turnover in the first year. These products are on top of the twelve products Cipla already exports to more than 25 countries in Asia, Africa, Europe, America, Australia and many of the CIS countries.
Lulla also informed that Cipla is filing an application for patenting its product Cyclosporin, immuno-suppressant, in the United States.
The company has already filed applications for Cyclosporin in South Africa, Australia, Europe and India.
On the domestic front, the company has ten to twelve products in the pipeline in various
categories such as anti-asthmatics, cardio vasculars and antibiotics.
They are expected to generate around Rs 20 crore additional sales to the targeted sales turnover of Rs 525-550 crore in 1996-97. The company is also doubling its research and development expenditure, which is currently around 3.5 per cent of the sales turnover.
Lulla said Cipla was not interested in acquiring other companies or tying up for importing technology and rather believed in reversing the trend.
In fact, the company is expanding facilities at the 40 acre Kurkumbh site.
The price of the Cipla stock has been steadily moving up for some time now.
From Rs 500 levels in January, the Cipla scrip has moved to Rs 600 levels. Market sources say this is not surprising as the scrip is fundamentally sound.
After the rights issue was listed separately, the Cipla stock performed better , said sources at Jardine Fleming.
The Securities and Exchange Board of India had recently allowed listing of Ciplas rights issue but with a rider.
The rider was that if final clearance was not granted, the company would have to return the money to the shareholders.
Sources said that foreign institutional investors were investing in Cipla shares and some of them who had bought the stock at Rs 380 were now selling, causing trading volumes to rise.
Rakesh Saraf of Alpic BBK, a broking subsidiary of Alpic Finance said the market was encouraged by the good half yearly performance of the company
On the Bombay Stock Exchange yesterday, the Cipla scrip opened at Rs 611, touched a high of Rs 613.75, then a low of Rs 608.25 and closed at Rs 612 on the BSE.
On the National Stock Exchange, the scrip closed at Rs 619 after touching the days high at Rs 620.
Health insurance foray likely
Cipla Ltd could join the ranks of pharmaceutical companies planning an entry into health insurance business after finance minister, P Chidambaram, allowed private sector entry into this segment.
We are conducting an internal evaluation of the financial viability of an insurance foray, Amar Lulla, Cipla director, said. Though Cipla had two companies in mind, it was too early to name them.
