Procter & Gamble Health Ltd

Procter & Gamble Health Ltd

Procter & Gamble Health Limited (formerly Merck Limited) is an Indian-based company principally engaged in the business of manufacturing and marketing of pharmaceuticals and chemicals. The company is the supplier of Pharmaceutical Chemicals Formulated Chemical Products Chemicals Industrial Chemicals Chemicals Pharmaceutical Industry and Chemical Products. The company offers prescription drugs biotechnology products and consumer health products including over-the-counter products. They also offer products for the treatment of cancer neurodegenerative diseases infertility endocrine and metabolic disorders cardiovascular diseases and other conditions with unmet medical needs.The company operates in two business divisions namely Pharmaceuticals and Chemicals. The Pharmaceuticals business comprises of Ethicals used in the treatment of Cardiovascular and Metabolic diseases & Vitamin-based formulations and Consumer Health Care Products. The Chemicals business comprises of Bulk Drugs and Pigments. Segment revenue relating to the Chemicals business consists of bulk drugs pigments and active pharmaceutical ingredients.Merck Ltd was incorporated in the year 1967 as E Merck (India) Ltd. The company was set up to take over the business of the Indian branch of Emeda Exports with all their assets and liabilities. The company is a 51% subsidiary of German firm Merck KGaA is a leading player in vitamin formulations.The company started their operations as a manufacturer of pharmaceutical specialties and over the years they have diversified their product range to include basic drugs fine and industrial chemicals and diagnostics. In the year 1981 the company became a public limited company they were the first in the Merck group.In December 2000 the company acquired the Livogen brand from Glaxo India for a consideration of Rs 8 crore. They entered into a co-marketing tie-up with the domestic Pharma Company Kopran for a new anti-inflammatory drug Rofecoxib in the country. They launched new drug under the brand name of 'Acrobat' while Kopran launched the product under the brand name of 'Ziflam'. In the year 2002 the company launched Anti-diabetic molecule namely 'Glimepiride' in the market. They changed their name from E Merck (India) Ltd to Merck Ltd with effect from March 27 2002 in order to create one strong international Merck brand and to develop a uniform international image.In the year 2004 the company sold their Taloja undertaking to Biochem Pharmaceutical Industries Ltd for a consideration of Rs 100 million. In addition the Pharma section of the company started a new unit namely Consumer Health Care to market medicines for common ailments. In the same year the company formed a Public Charitable Trust known as 'Merck India Charitable Trust' with the main object of rendering financial assistance to children from the poorer section of society to pursue primary and secondary education.In the year 2005 the company increased the production capacity of Bulk Drugs by 18 tonnes to 318 tonnes. They launched a new product namely Pedimune which is a formulation to improve the immunity level of Children.In the year 2006 the company expanded the production capacity of Bulk Drugs by 33 tonnes to 351 tonnes. In April 2006 the Life Science and Analytics (excluding Bulk Drugs) Business (LS&A business) of the Division was sold to Merck Specialities Pvt Ltd. All the assets and rights on the manufacturing and distribution facilities were transferred to Merck Specialities Pvt Ltd.In the year 2007 the company increased the production capacity of Injection/ Nasal Drops by 24 kilolitres to 427 kiloliters. The Pharmaceuticals segments launched Olmighty Tablets Evion Forte Tablets Polybion Complete Syrup Met Neurobion Injection Livogen CZ Tablets and Nasivion Care Drops.In the year 2008 the company expanded the production capacity of Bulk Drugs by 128 tonnes to 479 tonnes Injection/ Nasal Drops by 13 kiloliters to 440 kiloliters and Tablets/ Capsules by 40 million Nos to 400 million Nos. In addition they commissioned the project for the substantial expansion of the production capacity of their patented molecule Oxynex ST. This plant is a 100% export-oriented unit and having a capacity to produce around 150 tonnes per year.In March 2016 the Health Ministry banned 344 fixed drug combinations through a gazette notification based on the recommendation of its expert committee. Two drugs produced by the Company were impacted by this ban order. Pharmaceutical companies including the company challenged the order before the Hon'ble Delhi High Court and the Court was pleased to set aside the government notification. The Government may challenge the said decision of the Hon'ble Delhi High Court before Hon'ble Supreme court. Any adverse decision by the higher court or further addition to this list of banned drugs could impact the growth of the pharmaceutical companies. The Company has received a demand notice frorfi National Pharmaceutical Pricing Authority (NPPA) demanding a sum of Rs116.8 million plus interest Rs157.8 million alleging overcharging of price of the formulation Polybion L 100 ML syrup during the period from May 2006 to June 2009. The Company has challenged the said orders by way of a writ petition. In a separate proceedings filed by Cfadel Pharmaceuticals Private Limited the manufacturer of the said drug Hon'ble Kolkata High Court granted temporary stay against the demand notice subject to a sum of Rs22.5 million being deposited with NPPA which the Company has made. The Company has been legally advised it has a good defendable case. The Company has challenged the said orders and will defend itself vigorously however any adverse orders by the courts may have material impact on the profits of the Company.During the year 2016 the Company introduced a new drug Lipigo (Rosuvastatin) which received enthusiatic market response.During the Financial Year 2018-19 Company launched Whisper Choice Aloe Vera.The Company launched flagship brand 'Neurobion Forte' in FY 2019-20. It launched the 'New Livogen Iron' and 'Multivitamin Tonic' a comprehensive iron syrup. Polybion launched the New Polybion Active Syrup a superior B Complex Syrup enriched with Lysinein a sugar free tasty mango flavour base. During the year 2019-20 the shareholders of the Company vide their resolution dated June 12 2018 had approved the execution of a business transfer agreement (BTA) with Merck Life Science Private Limited (MLSPL) to sell lease or transfer certain businesses of the Company comprising biopharma performance materials and life science segments (BPL business) to MLSPL for an overall consideration of Rs 105200 lakhs on a slump sale basis which completed in November 30 2018. And subsequent to this Company's main business was changed to manufacturing and marketing of pharmaceuticals.