Knoll AG, the over $2 billion German pharma company of the BASF group, has severed its ties with German Remedies, an Indian company promoted by a clutch of five German majors, including Knoll AG.
The separation has taken place following Knoll AG's decision to sell its 4.62 per cent stake in the company. Knoll has also terminated the licensing agreement with German Remedies, which produces hormones, cardio-vasculars and anti-asthmatic drugs. The stake has been sold to Asta Medica AG, also of Germany, which already holds a 18.48 per cent stake in German Remedies. This transfer will take Asta's shareholding to 23.10 per cent.
Sources at German Remedies confirmed the development. They said they had obtained FIPB and RBI approvals for the transfer of shares and the increase in Asta Medica's stake.
German Remedies was formed by five German companies- Asta Medica AG, Beecham Wulfing, Boehringer Ingelheim GmbH, Knoll AG and Schering AG. The company will now have only three principal collaborators - Asta Medica AG, Boehringer Ingelheim GmbH and Schering AG.
Knoll AG has already set up a 100 per cent subsidiary in India as has Smithkline Beecham and does not need to be a part of a separate team for a pharma company. It has a 40 per cent stake in another pharma company -- Knoll India Ltd.
As per Knoll's strategy, all its future pharma launches will be routed through the 100 per cent subsidiary, Knoll International Pvt Ltd.
Three products licensed to German Remedies -- Isoptin, an anti-hypertensive, Clavirine, an anti-coagulant and Rytmonorm, a cardio-vascular drug -- have been taken back.
The three drugs contributed more than Rs 3 crore to German Remedies' turnover. Isoptin contributed Rs 3 crore to the 95-96 turnover while Clavirin and Rytmonorm had a small turnover.
Isoptin, a verapamil hydrochloride molecule, is off the market as there is no substitute for the molecule. Boehringer Mannheim's product, Calaptin, is also not available as its plant was closed down after the Comsat Forte fiasco. The only other company manufacturing the drug is Torrent Pharma.
Knoll officials said that Clavirin had already been launched by Knoll India and the other two products would be marketed during the year.
However, a decision on the company through which these products are to be routed is yet to be taken.
They will be launched either by Knoll India or Knoll International.
