RPG Life Science witnessed buying in a subdued market on Friday as the company plans an entry into the US markets with a drug used in kidney transplants.
By 11:20 IST, the scrip added on 4.10% to Rs 25.40 on BSE. A total of 4,826 RPG Life Sciences shares changed hands till then. In two successive sessions, RPG Life Sciences rose 9.7% from Rs 23.15 on 5 March 2003. In the two two months (between 10 January and 5 March 2003), the scrip lost 28.3% from Rs 32.30.
On Thursday, the company announced its plans to enter the US generic drugs market by launching Cyclosporine, a drug used in kidney transplantation. The demand for this product in the US markets is estimated at around $450 million (about 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.
RLSL 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.
RLSL 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, it has become 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, RLSL 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 RLSL, while public and institutions held 32.01% and 14.98% respectively.
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