Gufic Biosciences Blends New Tonic For Growth

Posted: Saturday, Mar 22, 2003 at 0000 hrs IST
Updated: Saturday, Mar 22, 2003 at 0000 hrs IST

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: It is never easy to part with a prized possession. Not unless, you know that tomorrow it will turn into a white elephant. Jayesh P Choksi, chairman and managing director of Gufic Biosciences was quick to make hay while the sun shone. In March 1999, he mowed down the size of his company from roughly Rs 100 crore to a mere Rs 20 crore by selling of its formulations divisions to pharma major Ranbaxy. Criticised initially for such a drastic decision, on hindsight, Mr Choksi is certain that his decision was a wise one.

Jayesh P Choksi, Chairman and MD, Gufic Biosciences

Since then, Mr Choksi has been busy virtually rebuilding the company from scratch. After scanning the environment, Gufic identified herbal medicines and biotechnology as sectors which would steer future growth. In 1997, when the government decided to change its patent laws and align it with WTO, most of the medium-sized and small pharma companies were forced to critically analyse their chances of survival under changing industry dynamics. For Gufic (then known as Gujarat Fine Chemicals) there were a few alternatives. For a small company, alternatives like heavy investment in research and development (R&D) or marketing was impractical and a joint venture with an MNC was not a lucrative option. “ There is always the fear that once the MNC partner gets a feel of the market, it will chicken you out,” says Mr Choksi.

Mr Choksi opted to get out of its formulations and concentrate on R&D in the herbal segment, despite the fact that many of its brands like Mox in the amoxycilin segment were brand leaders. “Initially there were many who laughed at my decision and it is those very...

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Gufic Biosciences Blends New Tonic For Growth

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