Industry sources say that the company may broadly look at an offer price of 20-25 per cent above the current Fulford share price, possibly in the vicinity of Rs 400 per share. The Fulford top brass, however, said that they were unaware of any such move and did not want to comment on the issue. Sources added that an actual offer could be around three to six months away.

Stock market circles, it appears, have already begun speculating on the prospects of a liberal offer from the American company. The Fulford scrip has been on the northward path since quite some time now and is currently moving in the range of Rs 302 and Rs 312 on the Bombay Stock Exchange. The stock touched a high of Rs 325.25 recently.

Significantly, it is understood thatkey institutional shareholders of the company have been more receptive to an offer price in excess of Rs 450, though the American multinational's response to this could not be ascertained. Financial institutions account for around 40 per cent of Fulford's equity capital.

The Rs 113 crore Fulford is active in four major therapeutic areas: dermatology, anti-histamines, antibiotics and oncology, with the skin-care segment accounting for roughly 50 per cent of turnover. Antibiotics and oncology account for 18 per cent and 14 per cent of the company's turnover respectively. Key sales contributors include Quadriderm, a dermatological brand and Polaramine, an anti-histamine.

The company it is learnt has revamped its business under two major thrust areas: virology and oncology. Key brands in the oncology segment include Intron-A, Viraferon, Drogenil and Ethyol which are essentially sold to hospitals. Intron-A has dual use for cancer and hepatitis C.

Fulford has also launched Alaspan (loratadine), a high techproduct for relief of symptoms of allergic rhinitis. Alaspan is the equivalent of Schering's international brand Claritin and has been launched as a syrup for children in India. The tablet version (a one day controlled release form) has also been introduced subsequently. Claritin is one of the key Schering brands and is a market leader in the non sedating anti-histamines segment.