Hind Ciba In Talks To Take Over Medtchel

Hindustan Ciba-Geigy is in talks to take over Hyderabad based ethambutol manufacturer, Medtchel Chemicals.

Though Ciba top brass were not available for comment, Medtchel sources told Business Standard that they would be "interested in a sound ethical relationship which could later lead to a possible merger."

They denied having been approached by Ciba Geigy.

The acquisition cost is estimated at Rs 15 crore.

Medtchel Chemicals produces 60 tonnes of ethambutol mainly for exports with an annual turnover of around Rs 10 crore.

Hindustan Ciba-Geigy does not manufacture ethambutol and outsources its requirements for the drug. Industry sources said the Medtchel Chemicals supplies the raw material to international players.

 

Ethambutol belongs to the anti-tuberculosis therapeutic group and Lupin Laboratories is the leader in this category, with its brands Combutol and Combunex having a dominant presence. Cyanamid also makes ethambutol under the brand name of myambutol while Themis Chemicals makes the drug under the brand name of Themibutol.

Ciba is keen to strengthen its position in the anti-tuberculosis category as the anti-tuberculosis market is growing at the rate of 13 per cent per annum with anti-tubercuosis drugs having a 3.2 per cent share of the pharmaceutical market.

Medtchel Chemicals had earlier been approached by Lupin Laboratories for a pact, Medtchel sources said.

However, the deal had fallen through on account of certain restrictions that Lupin Laboratories wanted to impose on the company's production, which was unacceptable to the Medtchel Chemicals management.