Industry sources say that Themis Pharmaceuticals (distinct from ThemisChemicals controlled by the Patels) is looking at a selling price ofapproximately Rs 40 crore, which works out to over two times the Metacinbrand turnover of around Rs 19.3 crore as per ORG data (MAT) in early 1999.Sale of pharmaceutical brands, on an average, command a premium of roughly1.5 times the brand turnover.

In a faxed response to The Financial Express, Themis Pharmaceuticalsmanager (administration) NB Desai said, "Your information that we plan tosell the brand is not correct. We are in a new global milieu. We areevolving a new path based on our tremendous brand strengths. Indian pharmaleadership is currently challenged by mega mergers globally and only aninnovative path offers opportunities for new and emerging markets.

The brand in today's context is to be invested for nurturing the businessleadership pathway. This is what we are pursuing." Sources in the know,however, added that many smaller pharma companies are forced to considerdivesting popular brands given that these intangible assets cannot be usedto fund growth plans in the present day scenario.

Metacin, launched in January 1970, is a pure paracetamol brand and indicatedin the symptomatic relief of pain and fever. Metacin was ranked 93 as perORG data in early 1999, several notches below competitor SmithKlineBeecham's Crocin at 33.

Sources say that Themis Pharma had been offered, some time ago, a littleover Rs 30 crore by an over-the-counter (OTC) products driven pharmaceuticalcompany. The Metacin deal, if it materialises, will follow a string ofsimilar acquisitions-including the buyout of Omnatax and Haemaccel byNicholas Piramal from Hoechst Marion Roussel-in the recent past.

Themis Pharma, with its manufacturing unit at Andheri in suburban Mumbai,has a clutch of brands in the cardiovascular and the anti-cold preparations'segment. It also has a few herbal products, though the finer details couldnot be got.