Astra Pharmaceuticals, one of the promoters of Astra-IDL, held negotiations with the Hindujas last year, following its intention to withdraw its collaboration with the joint venture company. One of the principal results of the negotiations was that Hindujas will have to exercise the share purchase option by June 30, 2000.
While the Hindujas did not exercise the option within the deadline, the matter has taken an even more interesting turn with the merger between Astra AB, the parent company of Astra Pharmaceuticals, and Zeneca Group Plc. The proposed agreements have been extended to take into consideration the views of AstraZeneca Plc. There is a possibility that AstraZeneca may rethink on the proposed agreements.
According to the original proposed agreements, if the Hindujas does not exercise the option, then Astra-IDL will continue to manufacture, use and sell the current range of Astra products under the Astra trademarks till December 31, 2004.
The Bangalore-based joint venture company is currently redrawing its Rs 90-crore strategic expansion through span of three years instead of five years as envisaged earlier.
The company had made a presentation during the global investors' meet on its expansion, which entails installation of plant and machinery and solar panel, setting up new buildings and research and development in the premises of its plant in Bangalore.
The company has initiated extensive work towards US-FDA (United States Food and Drugs Administration) approval for a few of its bulk drugs intended for future exports to the US and Canada. The necessary drug master files are being currently compiled and submitted to a US based consultant for onward submission to US-FDA authorities.
Astra-IDL's R&D facility, which was created and commissioned in 1997-98, has once been updated with additional equipment. Total R&D expenditure of the company is 2.78 per cent of the total turnover.
The company has upgraded the old Penglobe manufacturing area for tablet products other than semisynthetic penicillin. Subsequent to capacity augmentation, production facility of Aerosols be came fully operational in 1998-99.
Last year, Astra-IDL posted sales of Rs 120.70 crore against Rs 105.2 crore in the previous fiscal. The company's net profit stood at Rs 13.7 crore against Rs 10.4 crore in the previous fiscal.
