Industry sources say that the arrangement with Zeneca will see Ipca export Rs 6 to Rs 7 crore worth of PHPA, an intermediate for atenolol. The Indian company already has similar arrangements with British multinational SmithKline Beecham, Merck of USA and Hoechst Celanese.

Ipca is one of the largest manufacturers of bulk drugs like chloroquine phosphate, atenolol, pyrantel pamoate and its intermediates. The Rs 336 crore Ipca has several drug master files (DMF) for atenolol with international requlatory authorities like the US FDA, the UK MCA, Australia's TGA and the South Africa's MCC. The company's bulk drug unit at Ratlam has approved by the US FDA and the TGA.

Analysts say that such supply contracts will see the Mumbai-based company rake in significant forex inflows and could be indicative of trends inexport earnings during the current fiscal. During 1998-99, Ipca notched up exports of Rs 161 crores, with formulations accounting for 42 per cent of this income.

Significantly, the Ipca counter has been witnessing considerable interest on the bourses over speculation of a possible strategic equity alliance with a multinational pharmaceutical giant.

The scrip which was hovering in the region of Rs 127 on August 3, moved to close at Rs 149.40 on the Bombay Stock Exchange (BSE) on Monday. The counter saw volumes of 26,000 on Monday.

Industry analysts claim that a British multinational had, several months ago, looked at Ipca Laboratories seriously though the additional labour force that could come as part of any proposed deal was not viewed favourably. The Ipca top brass had in early July said that "as of date", the company was not looking at any such equity alliance, but added that it had been approached by certain merchant bankers, though unsuccessfully, on behalf of potential suitors.

Ipca Laboratoriesis a significant player in the anti-malarial and cardiovascular segments with key brands like Lariago, Laridox, Amodiaquine tablets, Lisoril, Tenoric and Tenofed. Ipca Laboratories is controlled by promoter managing directors, Premchand Godha and MR Chandurkar, who hold roughly 52 per cent each of the company's equity capital.