The Hindu Business Line : Kopran undertakes restructuring to focus on international markets

To accomplish this, it plans to enter into strategic alliances or assignments for marketing its domestic branded pharmaceutical formulations, the company told 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 (Rs 130 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 Rs 74.55 a share to Clearwater Capital Partners.

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

At a recent board meeting, Kopran allotted 1,21,50,000 warrants to Clearwater Capital Partners (Cyprus) Ltd and reconstituted the board with Mr Robert Dean Petty of that company being appointed as Additional Director.

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.

Mr Rajendra Somani and Mr Sunil Parekh have resigned as Directors of Kopran, while Mr S.J. Parekh and Mr 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 proposes to further develop and manufacture new products in the cardiology range.The company will develop non-infringing processes as well as its own process patents through Kopran Research Laboratories Ltd, a subsidiary, and then tie up with marketing companies in the US and Europe.

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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