Dishman Pharmaceuticals clarifies news item

Answers to queries on the broad outlay for the utilisation of the $50 milion raised in FCCB's by Dishman Pharmaceuticals and Chemicals Ltd, in August 2005, has been linked by the media to some of its plans under consideration.

These funds, says the company, would be utilised for investments into an API and intermediate manufacturing plant, dedicated R&D centre and as prepayment of the existing syndicated ECB facility, mergers and acquisitions, etc.

Dishman says that in response to queries from the media on the progress of these projects, its senior officials replied that the company was planning and thinking of a project in China. On a similar question whether the company planned any projects in Japan on account of the liberalisation of its drug policy, company executives stated that they would certainly explore this opportunity through its existing contacts / customers in Japan.

The company in a communication to the BSE, today, said that these statements were more of a future strategy and no material action had been initiated on them. Dishman says that it has made this statement in accordance with the SEBI guidelines and the listing agreement of the stock exchange.