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Tuesday, April 6, 1999

Reckitt assigns two drugs to group company 

Anju Ghangurde  
Mumbai, April 5: Reckitt & Colman India (RCI) has assigned two of its pharmaceutical brands Gaviscon and Colsprin to a "group company" for a consideration of Rs 2.55 crores. The brands assigned are Reckitt & Colman's gastric reflux suppressor Gaviscon and platelet aggregation inhibitor Colsprin.

The move, which is apparently in line with the British multinational's thrust on household products, is significant given that these two brands are expected to be subsequently marketed by Reckitt Piramal, a 60:40 joint venture with the Mumbai-based Nicholas Piramal.

Gaviscon, which would probably be manufactured at Nicholas Piramal's Pithampur facility in Madhya Pradesh, is believed to be among the most prescribed brands in the United Kingdom. Colsprin is available in three strengths in India and may continue to be made by RCI.

Analysts suggest that this group company may possibly be Reckitt's overseas parent, though there is no official confirmation on this. Reckitt-Piramal is expected to get marketing rightsto these products free of charge.

Reckitt Piramal already markets a range of products including Dettol, analgesics Saridon and Disprin, antacid Polycrol and skin lotion Lacto Calamine, though the ownership of the brands stays with the original owner.

Reckitt Piramal is a 60:40 joint venture between Reckitt & Colman UK (40 per cent), Reckitt & Colman India (20 per cent) and Nicholas Piramal (40 per cent) and was formed last year.

The joint venture was aimed at combining Reckitt & Colman India's (RCI) distribution strength at the grocery level and Nicholas Piramal's medical detailing muscle. RCI has approximately 2,500 distributors with access to close to 1.2 million retail outlets.

The joint venture which has become the single largest over the counter company in India in its very first year of operations registered sales of Rs 170 crores in the first eight months ended October 1998. Dettol Liquid, Dettol Soap and Disprin, owned by Reckitt & Colman but marketed by Reckitt Piramal, has registeredsignificant volume growths during 1998. Dettol, analysts say, is the number one brand in the antiseptics category, while Disprin is the country's largest analgesic brand in unit terms.

Reckitt Piramal which acquired Burnol (an antiseptic cream for cuts, wounds and burns) from Knoll Pharmaceuticals, was believed, at one time, to be examining the option of expanding its alliance to contract research efforts. The move is largely driven by Nicholas Piramal's Rs 20-crore acquisition of German multinational, Hoechst Marion Roussel's research and development unit at Mulund in Mumbai.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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