Torrent, Ranbaxy front-runners in race for Kopran’s Aten brand

Anju Ghangurde

Mumbai, Aug 28: TORRENT Pharmaceuticals and Ranbaxy Laboratories are believed to be the front-runners for a strategic deal revolving around the Mumbai-based Kopran’s Aten brand (an anti-anginal) and/or its entire formulations business.

Sources say that Torrent’s interest, spurred also by a strategic attempt to defend its turf in the cardiac care segment, has generated additional competition among the suitors, who now apparently include the Mumbai-based USV.

Key Torrent brands in the cardiac-care segment include Calcigard (nifedipine), Dilzem (diltiazem), Lorvas (indapamide hemihydrate) and Cordarone X (amiodarone Hcl). USV, on the other hand, has been rather active on the mergers and acquisitions (M&A) front. In 1999, it acquired the Angispan and Amlopine brands from Lyka Labs and bought over the Mumbai-based Neo Pharma. A year later, USV went on to acquire Glaxo brands Anovate and Deborin.

While no official confirmation was available from USV, Ranbaxy’s official spokesman had earlier said that the company has no comments to offer on speculation. Torrent, however, did not respond till the time of going to press.

Indications are that Kopran’s formulations business has being valued at around Rs 240 crore, with the Aten brand accounting for approximately half of this weightage. Kopran’s Aten brand was ranked 48th as per ORG data (moving annual total) for February 2000, with sales of over Rs 30 crore during that period.

Kopran had earlier maintained that the company was evaluating various strategic options including strategic investments/marketing investments and even the acquisition of brands.

Sources say that Kopran may also explore alliance options with eastern European company, Pliva Ltd, the discoverers of azithromycin. Indications are that the Rs 230 crore Kopran is also keen to license out two molecules, KNC 6 (an anti-ulcerant) and KNC 1206 (a laxative), which have completed advanced pre-clinical trials, to a strategic partner.

Kopran’s proposal essentially revolves around the “infusion of equity”, besides examining all “strategic options” to take the company into 2005, India’s deadline for ushering in product patents. Earlier the Delhi-based Morepen Labs had sought additional data on Kopran and though it was, at that time, largely examining the option of a joint venture. The latest position on this could not be ascertained.

Kopran already has a co-marketing tie up with E Merck for marketing of atorvastatin wherein E Merck markets atorvastatin under the brand name of ‘Trava’, whereas Kopran markets the drug under the Cholestat brand name. This forms part of Kopran’s strategy to increase its presence in the formulations market.