Hoechst puts four brands on the block

Hoechst Marion Roussel, the Rs 534 crore pharmaceutical major, has placed three of its antibiotic brands -- Cidoresp, Cidomex and Synastat -- and a pain killer drug Corbutyl on the block. The brands are 10-12 years old and together have sales in the range of Rs 18-20 crore.

The move follows Hoechst''s effort to reshuffle its product portfolio by pruning its existing product mix, by selling some brands and phasing out others. Its aim is to concentrate on new products. The company has identified cardiovasculars, anti-diabetes and vaccines as core areas.

The company''s executive director-marketing Bashir Ahmed says that the four brands are no more profitable to the company, though they enjoy good recall among doctors. "We would like our field force to spend its time in promoting new products like Allegra vigorously," he says. Though some parties have evinced interest in buying the brands, the sale is yet to materialise.

Following the merger with Roussel India last year, the Hoechst product mix bloated to 131 brands. This has now been pruned to 90. The phased out products are largely line extensions and small strength dosage forms; they contribute a mere five per cent to the company''s sales.

Hoechst has stopped all promotional activities related to these four brands and is waiting for the products to exchange hands. Company officials declined to comment on the price at which the brands would be sold.

With a focus on aggressive market introductions, Hoechst plans to launch new products every year. The company recently launched a new anti-histamine drug Allegra which recorded sales of Rs 2.7 crore in 1998, as per the IMS audit. Future launches include vaccine for mumps, measles, rubella and HIB-meningitis.