Hoechst Marion, Piramal In Co-Marketing Talks

Hoechst Marion Roussel India (HMR), a subsidiary of multinational Hoechst Marion Roussel, Germany, and home-grown pharmaceutical major, Nicholas Piramal India (NPIL), are in talks to co-market a range of formulations in India.

Confirming this HMR managing director, Debabrata Bhadury, said, "We are definitely working on a proposal with Nicholas Piramal for a co-marketing arrangement." The agreement is expected to cover new and existing products in different categories including anti-infectives and anti-diabetics.

Commenting on the issue, Madhukar Kurtkoti, president, ethical pharmaceuticals, NPIL said, "The arrangement is still being negotiated. We are looking at Nicholas Piramal marketing formulations from molecules provided by Hoechst under the NPIL brand name."

 

Co-marketing, loosely defined implies marketing of a product together. In this case, a molecule already being marketed by Hoechst will be done by NPIL under a different brand name.

New molecules currently undergoing clinical research are also likely to be covered in the agreement.

There are various payment options that are available to companies going in for such arrangements.

These include transfer pricing, manufacturing arrangements, brand-user agreements and technical-service-cum-royalty payments.

NPIL and HMR may opt for transfer pricing. Here, NPIL will receive HMR molecules for a price.

However, the product will be marketed by NPIL at a price which will include marketing margins.

NPIL has already acquired Hoechst's Mumbai-based research centre for a Rs 20 crore consideration.

It has also entered into strategic alliances with other multinationals, like a joint venture with Reckitt and Coleman for marketing OTC products.

The Indian subsidiary of HMR, has launched five new products this year, in several categories such like antidiabetics, antiepilepsy, antibiotics. It will soon launch a sixth product- an antihistamine called Allegra.

It is also planning on launching a range of vaccines through its joint-venture with the Chiron Corporation, US for hepatitis A, B, C and MMR. It has already applied for registration of some of these vaccines.

HMR enjoys a strong position in several therapeutic categories with brands such as Novalgin (analgesic), Daonil (anti-diabetic), Rabipur (anti-rabies), and Haemaccel (plasma substitute).

Recently, NPIL finalised a strategic alliance with British chemicals company LaPorte for its bulk drugs business. LaPorte is expected to provide technical know-how, while NPIL will bring in its knowledge of the Indian market.

Finnish company Cultor is the third partner.

NPIL's joint venture with UK-based Boots Company Plc has also been given the go-ahead by the Foreign Investment Promotion Board (FIPB).

The venture will market several products from both the partner companies. The foreign partner will have 51 per cent in the venture.

The company posted a 26 per cent rise in net profits to Rs 9.61 crore in the first quarter of the current financial year.