Both Fulford India and Parke-Davis India are owned 40 per cent by their American parent and have a market share of 0.91 per cent and 1.49 per cent respectively (MAT as per ORG figures for January 1999).

Fulford is ranked 31, while Parke-Davis is 10 rungs higher at 21st position, as per ORG data. The proposed combine would boast of a turnover of around Rs 285-300 crore, excluding the sales of Warner Lambert's 100 per cent subsidiary, essentially involved in the confectionery business. Internationally, the combine would figure among the world's 10 biggest drug makers with a stock market value of $125 billion.

Bloomberg News, on May 21, reported from New York that Warner Lambert, sellers of the top US cholesterol reducing drug Lipitor, and Schering Plough, makers of theworld's number one anti-allergy pill, Claritin, were holding merger talks. The report quoted "persons familiar with the talks" and said that discussions had intensified in recent weeks though talks had been on over the past two years. The report, however, quoted the source adding that "no agreement was pending though and the talks could founder".

Analysts in Mumbai said that even if the global merger goes through, its true impact would be felt only when both multinationals bring in some of their blockbuster drugs, after India puts in place a strong product patent regime. "It is unlikely that Parke-Davis will bring in Lipitor right away though Fulford has launched Alaspan, seen as an equivalent of Schering's international brand, Claritin. A merger, at this stage, is unlikely to translate into big gains," they said.

Key Parke-Davis brands include Benadryl, Gelusil MPS, Ferradol, Lopid, Kapseals and Atpark while Fulford's leading formulation brands are Quadriderm, Intron-A, Viraferon, Drogenil andPolaramine.

Significantly, analysts have been optimistic about the chances of a stake hike in both Parke Davis and Fulford India to 51 per cent by the American parent companies respectively, though the former has more recently denied any intent to do so immediately. Fulford, on the other hand, analysts say had been examining the option of an open offer at a price of approximately 20-25 per cent above market prices. There is, however, no official confirmation on this.

Parke-Davis is also in the process of identifying a buyer for its manufacturing facility at Marol in the western suburbs of Mumbai, though the latest position on the proposed sale could not be got. The Marol unit has been on the block for the past year and the Parke-Davis management is believed to be looking at price of around Rs 80 crore for the unit. All the 300-and-odd workers at this unit had earlier opted for a voluntary retirement scheme.