News Updates
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Kopran
to undertake major Financial and Business Restructuring
Kopran
Ltd. has undertaken a financial and business restructuring whereby it intends to
focus on
the International markets, which are mainly regulated for bulk drugs
and formulations.
As
of January 2005, the new WTO patent regulations may change the business dynamics
of the
domestic pharmaceutical Industry. However,
the international generic market presents
a huge business opportunity, as
billions of dollars of drugs go off patent over the next few years.
Accordingly,
Kopran plans to shift its historical emphasis from the domestic business
to the
international. To
accomplish this, it plans to enter into a strategic alliances or
assignments of
its branded pharmaceutical formulations. In this respect necessary discussions
are in progress with various companies.
This
new business strategy should improve the overall financial condition of the
company,
and provide the resources to reduce debt and working capital.
Another
large market opportunity for Kopran is the herbal
health market. The estimated size
of this fast growing market is 60 billion
dollars. To exploit the potential
of this domestic and
international market, Kopran intends to merge with Kopran Pharmaceuticals Ltd which is the
company
marketing the SMYLE brand. Effective 1st March'05, Kopran intends to have a
large
range of OTC products marketed under the SMYLE brand.
While continuing to market to the
domestic market, there will be
increasing focus in marketing SMYLE branded products to the
international
market.
The
company had a Corporate Debt Restructuring, and proposes a further restructuring
with
its lenders, whereby the interest burden would be reduced substantially.
This would include
an assignment of a major part of its debt through a one-time
settlement with most of the
existing lenders.
The
company has recently received a UK MHRA approval for both of its formulations
plants at
Khopoli and shall be marketing its products in the UK and Europe. It further intends to obtain
an US FDA approval within the
next two years.
The
bulk facilities located in Mahad are already approved by the European
Directorate for
Quality of Medicines (EDQM).
An upgrade and expansion plan has been initiated, whereby
the bulk
products would be exported, thereby facilitating a US FDA approval.
Kopran
manufactures a large range of antibiotics including sterile Cephalosporin’s
and
Erythromycin Derivatives. Enhancement
of its antibiotic manufacturing capacity should lead
to economies of scale.
Further Kopran shall expand capacity for its cardiovascular range of
products, which include Atenolol, Atorvastatin and Amlodipine.
It proposes to further develop
and manufacture new products in the Cardiology range like Lisinopril, Ramiperil and Ezetimibe.
Kopran's
strategy is to develop Non-Infringing Processes as well as its own process
patents,
and then tie up with marketing companies in the US and European market
through its subsidiary
Kopran Research Laboratories. It has already filed
process patents for Amlodipine, Lansoprazole
and Sildenafil Citrate.
Further,
Kopran Research intends to licence out its molecules KNC-6 an anti-ulcerant and
KNC-1206 a bowel regulator to other pharmaceutical companies and also seek
collaboration
for developing new molecules for its platform technology. The
future strategy of focussing
on the regulated markets such as Europe and the U.S,
is expected to produce a turn around
in the company's financials during the
coming year.
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