Zydus Cadila, India''s fourth largest healthcare company,
and Mumbai-based Kopran Ltd have entered into a strategic
alliance in the areas of marketing and manufacturing of
formulation brands and collaborative research projects.
part of this arrangement, Kopran has perpetually assigned
its anti-hypertensive brand Aten to Zydus Cadila for a
consideration of Rs 75 crore. The product will be manufactured
the agreement reached, Kopran will also co-market Zydus Cadila''s
new products in the diabetes, central nerve systems and other
speciality segments. The products decided upon include Olanzapine
(Olzep), Zolipidem (Zopiz) and anti-diabetic Glimepiride (Gliran).
this, Zydus Cadila becomes the No 1 player in the cardiovascular
segment with a turnover of over Rs 100 crore and a market share of
8.3 per cent in the segment. In fact, Zydus Cadila outstrips the
current No 1 player in the cardiovascular segment by nearly 20 per
strategic pact also helps in Kopran entering the fast-growing
segments of CNS and diabetology. Zydus Cadila and Korpran will
also undertake efforts to research new molecules and commercialise
Research Laboratories has already filed two patents KNC-6 (an
anti-ulcerant) and KNC-1206 (a bulk laxative) and completed
advance pre-clinical studies based on a platform technology.
separate technology transfer agreement was entered into for
transfer of technology for zero impurity Atenolol that includes
milestone payments totalling Rs 20 crore.
is the largest brand in the cardiovascular segment. Aten, today,
ranks within the top 50 Indian Pharma brands. The brand is ranked
33 with a market share of 39 per cent in its category and a growth
of 18 per cent (ORG data for the month of July 2001.) The brand''s
present turnover is Rs 37 crore.
will finance the acquisition partly through debt and partly
through internal accruals. Elaborating on this strategic
initiative, Zydus Cadila managing director Pankaj R Patel said:
"Our strategy over the last few years has been to identify
and exploit opportunities that can make a significant difference
to our topline and bottomline growth. This strategic pact
strengthens our core areas and reinforces our market presence. We
saw Aten as a good fit in terms of its size and presence in the
cardiac care market. It will certainly add value and help
consolidate our cardiac-care product portfolio."
Cadila has been fortifying its presence in the formulations market
with a series of strategic deals. The group acquired Recon
Healthcare Ltd, to strengthen its presence in the formulation
business in the southern markets. The group has also acquired
Mumbai-based German Remedies, gaining entry into women''s
healthcare, respiratory and oncology segments.
Cadila also acquired five formulation brands, Deriphyllin,
Paractol, Ildamen, Xipamid, and Beta Xipamid from German Pharma
major Asta Medica. Kopran managing director Surendra Somani has
said that with Aten in Zydus Cadila''s fold, Kopran would have
phenomenal opportunity to introduce new products and enter new
one hand Aten would grow faster in the hands of Zydus Cadila,
Kopran would be able to achieve higher growths through its
strategy of launching new products.
on the overall strategy, Somani further said that Kopran had
broad-based itself into basic research, speciality bulks, new
dosage forms, OTC products and international business. The
inclusion of Aten takes Zydus Cadila''s combined turnover closer to
the Rs 1,000-crore mark. With a contribution of 19 per cent, the
cardiovascular segment has emerged as the largest contributor to
the group''s domestic formulations business.
which has been growing at the rate of 18 per cent (ORG, month of
July 2001), now joins Zydus Cadila''s high profile cardiac care
brands which include Atorva (Atorvastatin), Losacar (Losartan),
Amlodac (Amlodipine) and Carvil (Carvedilol).
last two years, the group has launched a slew of blockbuster
products, the most recent ones being Noklot (Clopidogrel) and
Glizone (Pioglitazone). By unlocking values through this
initiative, Kopran would be able to fund its research programme,
to take NCEs to market, invest in growth of brands in formulations
and OTC business apart from enhancing its international business.
been enjoying a 100-per cent growth rate since the last few years
and its sales is expected to cross Rs 40 crore in the current
year. It may be noted that during the business re-engineering
exercise, Kopran Pharmaceuticals Ltd, marketing the whole range of
Smyle brand is under a scheme of merger with Kopran Ltd.
OTC business under the umbrella brand of Smyle coming into Kopran,
its sales and profitability would receive a major boost. Among new
products, Kopran has recently launched Cholestat (Atorvastatin),
Ziflam (Rofecoxib), Fintride (Finasteride) and a whole range of
dry powder inhalation systems and capsules under the umbrella
brand of Vent Easecaps and Easehalers. The Dry Powder Inhalers are
the fastest-growing segment in Asthma.
Cadila has been leveraging its strength in new product development
to introduce several new products, many of them for the first time