RPG Life Sciences has been energised by the announcement that the company has recently launched seven new products.
The scrip of the pharmaceuticals company jumped 5.16% to Rs 23.45 on BSE following the news.
However, merely 120 shares were recorded as volumes on the counter by 10:20 IST. The scrip's most recent trend has displayed upswing, rising 8.56% in two sessions from Rs 21.60.
The company has said that it has launched seven new products, all in the high value, fast growing therapeutic segments, to capture a larger share of these markets in India. These are Ceftobac (a novel combination of antibiotic Ceflxirne with Lactobacilllus to counter diarrhea, a common problem seen with antibiotic use), Gatox (antibiotic), Valcib (antiarthritic), Glimetop (antidiabetic), Citalop and Venzup (antidepressants) and Cartab (chronic heart disease). These drugs have a market estimated at Rs 1,400 crore in India.
In March 2003, RPGLS announced plans to enter the U.S. generic drugs market by launching Cyclosporine, a drug used in kidney transplantation. The demand for this product in the U.S. markets was estimated at around $450 million (Rs 215 crore).
The company also has plans to set up a joint venture in Puerto Rico with an American company to supply Cyclosporine to the US and other markets. It will initially supply the bulk drug to the joint venture company. Later, it will provide the formulation technology to enable local production of the drug.
RPGLS has a major presence in the pesticides and pharmaceutical sectors and has also expanded into the food additives sector. The company has registered a steady growth over the past few years in the agro-chemicals and pharmaceuticals business.
RPGLS enjoys a significant presence in five of the ten largest therapeutic product groups in the country -- anti-diarrhoeals, anti-psychotics, diuretics, antibiotics and anti-spasmodics. Some of its brands (like Lomotil and Lomofen) enjoy brand leadership status and others (like Nufex, Rinostat, Naprosyn and Siloxogene) have a growing presence in their respective segments.
The company's new bulk drugs plant set up at Ankleshwar, Gujarat, has become fully operational.
Besides manufacturing a wide range of insecticides, herbicides and fungicides, the company has emerged as a brand leader in the synthetic pyrethroids market as well, with its Fenval brand. In the food additives segment, it manufactures and markets in India, Equal, a low-calorie sweetener from G D Searle & Company, USA.
For the quarter ended 31 December 2002, RPGLS recorded a loss of Rs 4.09 crore, compared to a net profit of Rs 4.33 crore in the corresponding period of the previous year. Net sales declined by 26.3% to Rs 26.51 crore from Rs 35.97 crore in DQ 2001.
As on 31 December 2002, the promoters held 50.53% stake in RPGLS , while the public and institutions held 32.01% and 14.98% respectively.
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