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Mr Mark Saldanha (left), Managing Director, Glenmark Laboratories Ltd, and Mr Vijay Thakkar, Managing Director, Tasc Pharmaceuticals, at a press conference in Mumbai on Thursday. - Paul Noronha

Mumbai , March 10

GLENMARK Laboratories Ltd and Tasc Pharmaceuticals Ltd have amalgamated their operations to form a combined entity that will have a presence in the entire pharmaceutical value chain.

Mr Mark Saldanha, Managing Director of the unlisted Glenmark Labs, told newspersons that the combined entity is valued at Rs 1,200 crore. Having a presence in pharmaceuticals and biologicals, the merged entity would be present both in the bulk drug and the finished dosage form segments, he said.

He expected the amalgamation process, including the court approvals, to be completed in about two months. The name of the merged entity would be decided in another two weeks, he said.

Promoters would hold 63 per cent equity in the combined entity, of which Mr Mark Saldanha would hold 53 per cent, he said. Institutional investors would hold 15 per cent and the rest would be with the public, he added.

Elaborating on the timing of the integration, he said that his company was export-driven and had a presence in the finished dosage form business and in research.

The amalgamation with Tasc will help plug the bulk drug requirement of the company, he said. The swap ratio for the merger, subject to approvals from both the boards, is 1.8:1 or the shareholders of Glenmark Labs will get 1.8 shares of Tasc for every share they hold in Glenmark Labs.

Post-amalgamation, the entity is projected to have a turnover of Rs 590 crore for the fiscal 2005-06, he said.

The growth for the combined entity is expected to come from multi-million-dollar contract research and manufacturing deals that are already in hand, he said.

Further, he added that there would be no restructuring of the companies or the workforce. Tasc has about 150-odd employees, he said.

Glenmark Labs was incorporated in 2000 as a wholly-owned subsidiary of Glenmark Pharmaceutical Ltd. It was spun-off into a separate entity in March 2003. The company has a presence in central nervous system and psychiatry products, besides looking at the cardio-vascular and diabetes segments.

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