Marksans cleared to hive off API division
The two active pharmaceutical ingredient (API) facilities, which are located in Kurkumbh, make a more than 180 different compounds and export them to 54 markets around the world.
Key products include the antibacterial ciprofloxacin and the histamine H2-receptor antagonist ranitidine, manufacturing and testing capacity for which was recently increased.
The lease or divestiture plan was approved by Marksans’ board late last month as the latest part of the restructuring strategy the specialist contract research and manufacturing services (CRAMS) firm announced in October 2009.
The overall aim is to raise around INR2bn (€30m) through divestitures and “the issue of equity or equity linked instruments.”
The move towards formulations and away from the API manufacturing differs somewhat from comments Marksans made when it bought over-the-counter (OTC) drug firms Relonchem and Bell’s & Sons in late 2008.
At the time, company managing director Mark Saldanha that: “There is tremendous potential with Marksans being fully integrated into formulation as well as active pharmaceutical ingredients (APIs).”
Today’s news and the restructuring plan clearly indicate that Marksans has changed its strategy although, as yet, the pharmaceutical firm has not said why it has chosen to refocus in this way.
Perhaps Marksans believes that the contract drug formulation services sector will be less competitive and more lucrative area than the contract API manufacturing market going forward.
Marksans share price on the Bombay Stock Exchange stock rose around 2 per cent to 5.3 rupees when the sale/lease plan was announced.
