labels: pharmaceuticals, kopran
Kopran to shift focus to global markets news
Our Corporate Bureau
06 June 2005
Mumbai: Kopran Ltd is undertaking financial and business restructuring of its business in order to focus on international regulated markets for bulk drugs and formulations. The company is now gearing up to shift its historical emphasis from the domestic business to the international arena.

The company plans to enter into strategic alliances or assignments for marketing its domestic branded pharmaceutical formulations, the company has informed the BSE. Earlier, Kopran had undergone a corporate debt-restructuring scheme.

However, the debt servicing costs were not reduced substantially and hence, the company has assigned a major part of its debt (Rs130 crore) to Clearwater Capital Partners India and the interest burden has been brought down to a nominal level. This restructuring through a one-time settlement with most of the existing lenders will help the company bounce back and once again be profitable, the company said.

Further, the shareholders have approved placement of equity through warrants of up to 12 million shares at Rs74.55 a share to Clearwater Capital Partners.

The promoters too have subscribed to three million warrants at the same price.

The international generic market presents a huge business opportunity of nearly $50 billion, which is expected to touch $100 billion by 2010, as drugs go off-patent over the next few years. Kopran is also looking at the herbal health market.

To exploit the potential of this domestic and international market, Kopran has merged with itself Kopran Pharmaceuticals Ltd (the company marketing the Smyle brand) with effect from March 1, 2005. The company intends to have a range of OTC products marketed under the Smyle brand. While continuing to cater to the domestic market, there will be increasing focus in marketing Smyle products internationally.

In the meanwhile, Rajendra Somani and Sunil Parekh have resigned as Directors of Kopran, while S.J. Parekh and Susheel Somani have been appointed as Directors in the casual vacancy caused as a result.

Kopran manufactures a range of antibiotics. Enhancement of its antibiotic manufacturing capacity should lead to economies of scale. Further, the company intends to expand capacity for its cardiovascular range of products. It has already filed process patents for amlodipine, lansoprazole and sildenafil citrate, the announcement said.

Additionally, Kopran Research intends to license out its molecules, KNC-6 (an anti-ulcerant) and KNC-1206 (a bowel regulator), to other pharmaceutical companies and seek collaboration for developing new molecules for its platform technology.

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Kopran to shift focus to global markets