Kopran Ltd has undertaken a financial & business restructuring whereby it intends to focus on the International regulated markets, for bulk drugs and formulations. It plans to shift its historical emphasis from the domestic business to the international. To accomplish this, it plans to enter into strategic alliances or assignments for marketing its domestic branded pharmaceutical formulations, according to a company release.
Another large market opportunity for the Company is the herbal health market. The estimated size of this fast growing market is Rs 60 billion dollars. To exploit the potential of this domestic and international market, Kopran Pharmaceuticals Ltd., which is the Company marketing the Smyle brand has merged effective March 01, 2005 with the Company. The Company intends to have a large range of OTC products marketed under the Smyle brand. While continuing to market to the domestic market, there will be increasing focus in marketing Smyle branded products to the international market. The recent change in the patent regime is expected to help the Company to increase its sales of OTC and Herbal products.
The Company had earlier undergone a Corporate Debt Restructuring scheme. However, the debt servicing costs were not reduced substantially, therefore the Company has now assigned a major part of its debt (Rs 1300 million) to Clearwater Capital Partners India Ltd., and the interest burden has been brought down to a nominal level. This restructuring through a one-time settlement with most of its existing lenders will help the Company bounce back and once again be profitable.
Further, the shareholders have approved placement of equity through warrants upto 12 million shares at Rs 74.55 per share to Clearwater Capital Partners. The promoters too have subscribed to 3 million warrants at the same price.
The Board has allotted 121.50 lakh warrants to Clearwater Capital Partners (Cyprus) Ltd. and also reconstituted the Board. Accordingly, Robert Dean Petty of Clearwater Capital Partners (Cyprus) Ltd. has been appointed as Additional Director and Rajendra Somani and Sunil Parekh have resigned from the Directorship of the Company. Meanwhile, S J Parekh and Susheel Somani have been appointed as Directors in the casual vacancy caused as above.
The Company has recently received a UK MHRA approval for both of its formulations plants at Khopoll and is marketing its products in UK and Europe. It further intends to obtain an US FDA approval within the next two years.
The Company manufactures a large range of antibiotics including sterile Cepholosporins and Erythromycin Derivatives. 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, which include Atenolol, Atorvastatin and Amlodipine. It proposes to further develop and manufacture new products in the Cardiology range like Lisinopril, Ramipril and Ezetimibe.
The Company will continue to develop Non-Infringing Processes as well as its own process patents through its subsidiary Kopran Research Laboratories Ltd. and then tie up with marketing companies in the US and European market. It has already filed process patents for Amlodipine, Lansoprazole and Sildenafil Citrate.
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 also seek collaboration for developing new molecules for its platform technology.