Merck India Ltd will not rush launching its patented products in India post 2005, but will wait for another 2-3 years till the intellectual property rights (IPRs) laws are properly set in place, said R.L. Shenoy, director, finance, Merck (I) Ltd. He was speaking at the Annual General Meeting of the company in Mumbai on Saturday.

“Although product patent will become legal by January 2005, it may take another three years for it to become practical. We will launch our new products, when the situation becomes ideal for MNCs to launch their products. We have not yet identified our products to be launched,” said Shenoy.

Merck India chairman S.N. Talwar in his speech pointed out that the company in the first two months of 2004 recorded a turnover of Rs. 50.2 crore which is lower by 5 per cent as compared to the previous year. The pharma division has achieved a sales of Rs. 29.6 crore representing a decline of 10 per cent over the previous year, while the chemical division has shown a modest growth of 2 per cent over the previous year with sales at Rs. 20.4 crore.

“The recent price reductions announced by the government in the case of Vitamin E, Vitamin C and Vitamin A bulk drugs would result in lowering the sales realization in the current year. However the company is confident of achieving a steady growth in turnover by year-end,” he said.

Real estate prices being on the lower, Merck has not been able to find a buyer for the company’s land, factory and machinery at Taloja near Mumbai. The valuation of the property is worth Rs. 25-40 crore according to Shenoy.

Merck India announced a dividend of 100 per cent for its shareholders compared to previous year’s 78 per cent. The cash surplus of the company has steadily grown to Rs. 110 crore.