• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Deeptha Rajkumar

RUMOURS that Nicholas Piramal could be looking at acquiring Elder Pharma has been doing the rounds of the market in the recent past.

There is also talk that Elder Pharma is looking to sell its flagship brand, Shellcal. Merchant bankers have reportedly been appointed by the company for this purpose.

While the stock of Elder Pharma consolidated on Tuesday, brokers said that recent activity at the counter has fuelled speculation in the market that there is some major corporate development in the offing.

Fundamentals and the company's growth trajectory continue to be the main driver at the Nicholas Piramal counter, which has also been making strong gains on the bourses.

While not denying that the bid was in line with the company's position on M&A, analysts were sceptical as to what Nicholas Piramal would gain from acquiring Elder Pharma.

"In the domestic market they have a problem of plenty. The company is looking to sell many of its tail-end brands that have come via its legacy of acquisitions. However, it is plausible that they could be interested in Shellcal,'' an analyst said.

When contacted, Dr Swati Piramal, Director (Strategic Alliances and Communication), Nicholas Piramal, refused to comment on M&A opportunities of the company.

"We are always looking for opportunities but we cannot comment on any M&A possibilities be it a company or be it a brand,'' Dr Piramal said.

However, she did confirm that the company was looking to divest its tail-end brands in the region of Rs 5 crore and below. "Some time back we sold Burnol - a Rs 3-crore brand - to Dr Morepen."

Commenting on the EMRs that Nicholas Piramal is likely to file post patent regime, Dr Piramal said that the company had submitted its post-marketing surveillance for its malarial drug, Ablaquin.

"We are awaiting clearance and then we will qualify for the EMR. One other product will qualify for EMR in 2005. Unless a patent is issued we cannot file,'' she said.

According to Dr Piramal, on the R&D side the company has four projects on the anvil.

While a cancer drug will go into clinical trials by June 2004, there is no time frame set for the other projects.

Commenting on the company's growth trajectory, she said: "While we remain aggressively focused on the export front and it will be the company's growth driver, it will not be at the cost of our presence in the domestic market.''

Nicholas Piramal ended the day at Rs 696.20, up 0.69 per cent with around 13,279 shares traded on BSE. The stock has appreciated by almost 240 per cent from its low of Rs 205 (BSE) on March 31, 2003.

Elder Pharma closed at around Rs 157.70 with around 1.4 lakh shares traded on the BSE. The stock has appreciated by more than 500 per cent from its low of Rs 26.05 on March 28, 2003.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Ricoh, NRG make open offer for 24% stake in Gestetner

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line