Elder Pharmaceuticals (Elder) has entered into a marketing alliance with Laboratoires Biorga of France for some of its high-end skin care products in India. With this tie up Elder is set to foray into cosmoceuticals. Cosmoceuticals combine the properties of pharmaceuticals and cosmetics. Initially, Elder will introduce products priced between Rs 350 and over Rs 1,000. It is learnt that the alliance is expected to contribute Rs 7 to Rs 8 crore in revenues to Elder over 2 to 3 years.
“We chose Elder as our partner in India owing to the similar philosophy and size of the two companies. We feel that this is the right time to enter India,” said Steven Thevignot, director (international operations) of Laboratoires Biorga. The euro 45 million Laboratoires Biorga operates in over 35 countries and specialises in dermatological and derma-cosmetic products. A part of the Biorga Uriage group, it is one of the few companies which use isotonic uriage spa water as a major ingredient in all their products which ensures the equilibrium and care of sensitive skin.
The company shall introduce some of its niche dermatological and derma-cosmetic products in India through an in-licensing agreement with Biorga. The products shall be sold only through prescription/ethical route. Biorga’s India focus comprises of products for damaged skin, sensitive skin, pigmented Skin, atopic-severely dry skin, anti ageing, sunscreen, hair loss, dandruff treatment and acne.
Biorga is now the 25th International partner for Elder, which already has a presence in the skin care market. An internal Elder study sees this sector growing from the current Rs 1,700 crore to Rs 2,300 crore by 2005-06. This alliance is part of Elder’s strategy of focusing on niche segments.
Some of the in-licensing partners of Elder include Haw Par Healthcare (Singapore) for Tiger Balm, Blistex Inc (USA) for Lip Care products, Zambon spa of Italy for Fluimicil, Covex (Spain) for Citicholine (Cerebro Neuropsychiatry segment) and Ferrer (Spain) for Vimpocetine (Cerebro Neuropsychiatry segment) to name a few. Elder is the owner of Shelcal, a calcium supplement, which is its indigenous brand and also the largest turnover contributor.