Drug prices fall as new MRP comes into force
New Delhi: The price of over 1,000 brands of medicines have fallen as the rule of capping trade margins came into force from October 2. Pharmaceutical industry bodies had submitted a list of over 1,000 brands of 'generic-generic' and 'branded generic' drugs, whose retail margins would be fixed at 35 per cent while wholesale margins would be capped at 15 per cent.

The price of Omeprazole, an ulcer drug, has fallen by 8.8 per cent, while the price of Ciprofloxacin, a broad spectrum antibiotic may fall by 92 per cent to Rs6.90 from Rs84. Companies have been given a month's time to comply with the new margin norms. Also, the system of labelling 'maximum price inclusive of all taxes' will also be implemented due to which drug manufacturers cannot charge extra levies over MRP. This rule has been relaxed for imported drugs, for a period of six months. These drugs will have to comply with the new MRP rule by March next year.
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Reliance reduces fuel prices
Mumbai: Reliance Industries (RIL) has reduced retail petrol and diesel prices by Re one per litre in line with decline in international crude prices. The reduction in prices would be effective from 6.00 am on October 1, 2006.

RIL fuels will now sell at Rs1.5 per litre higher than nearest PSU outlet as compared to Rs 2.5 per litre differential earlier, the company said. Reliance runs close to 1,300 retail pumps. Its market share, which stood at 14 per cent earlier this year, has dropped to two per cent after the price differential with PSUs.
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Yahoo to expand operations in India
New Delhi: Internet major Yahoo is planning to launch up to six new portals in regional Indian languages and acquire or enter into partnership with an Indian company. The company will also increase headcount at its R&D centre in Bangalore to 1,000 from current 800 by the end of this year. Yahoo would add 200 software engineers at its R&D centre at Bangalore, taking the total headcount to 1,000 by the end of the year, a Yahoo official said.

The spokesperson said Yahoo is also in discussions with various Indian companies for partnerships and acquisitions and a decision to this effect is expected in the next 6-10 months.
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Marico may acquire more brands in Egypt
Mumbai: Marico Industries is scanning the Egyptian market for more acquisitions according to Marico CFO Milind Sarwate. Last month Marico Industries acquired the Egyptian hair care brand Fiancee.

Marico is closely looking at the beauty and wellness segments and may also examine rationalising the Fiancee portfolio.

Sources said Marico was already in talks for other international acquisitions but will pick up brands and not entire companies.

Marico recently appointed Brajesh Bajpai, a former executive of Frito Lay India, as its country head for the African nation and may also make Egypt the hub for its expansion into other African markets.

The company is also looking at other African countries like South Africa for identifying potential acquisition targets, apart from South-East Asian countries like Vietnam, Indonesia and Malaysia.
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Satyam to enter joint R&D projects with auto companies
Chennai: Satyam Computer Services' new strategy in the automotive sector includes entering into joint research and development projects with its customers in the automobile industry and take up the full responsibility of innovation in a revenue sharing formula.

Company officials said the joint effort could be in areas like product lifecycle management, engineering and supply chain management. This is as automotive products have become more IT-centric.

Satyam would innovate new features into the vehicle, and work in areas such as global positioning system, smart cards, navigations systems, wireless and voice recognition.

Educational institutions and industry associations would also be involved in joint research and development. This concept is different from outsourcing product development where clients give only the design to a vendor to create a product. Joint research would help clients design and launch new products quickly, he said.

Another initiative taken by the company is adopting a uniform value contract irrespective of the cost escalation during the contract period - a client is locked in with Satyam for 3-5 years. This also prevents clients switching over to other vendors on lower cost.

Satyam also enters into various service level agreements with the clients during the period. Through the lock-in, revenue and business becomes predictive.
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Natco Pharma to set up R&D entity
Hyderabad: The Rs207-crore active pharma ingredients (APIs) and formulations company Natco Pharma is planning to hive off its R&D division into a separate outfit. Company officials said the company wants to de-risk the company from the uncertainties of the success of new molecules, apart from the high costs associated with filing of investigative new drug application (IND) for these molecules. The company proposes to rope in leading venture capital funds and private equity players to pump in substantial funds for taking forward the R&D activities on the promising molecules and support filing of INDs.

The company is also actively pursuing the de-risking strategy with regards to the costs of filing abbreviated new drug applications for both APIs and finished dosages. The company is in negotiations with leading global players for entering into agreements, similar to that recently inked with the US-based Akorn Inc and expects to firm up two more pacts before the calendar year.

Natco entered into a definitive supply agreement with Akorn Inc for the supply of two APIs on a margin-sharing basis.

Under this, Natco would supply APIs for both drug products, while the US company would focus on manufacturing the finished product, regulatory submissions, marketing and distribution in the hospital, clinical and home healthcare markets in the US and Canada.
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Bajaj Auto Sept sales up 38 pc
Mumbai: Bajaj Auto has reported a 38 per cent increase in the number of vehicles two-and three-wheelers combined — at 3,00,141 units from 2,18,012 units in September 2005. Sales of motorcycles rose by 50 per cent to 2,71,377 units (1,80,926 units).
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BSNL slashes landline, mobile tariffs in AP
Hyderabad: Bharat Sanchar Nigam (BSNL) has announced a new scheme for apartments and large housing complexes in Hyderabad, Visakhapatnam, and Vijayawada in Andhra Pradesh.

While the monthly rental would be Rs100 per household connection, two per cent free connections would be provided at security gate, office of the apartment or society.

Announcing the new scheme with rentals of Rs399, Rs599 and Rs899, officials said that apart from reducing the calling rate, all three plans allow for unlimited free calls to BSNL fixed and WLL numbers in the local area.

BSNL also reduced the cost of SIM card for mobile prepaid connections from Rs224 to Rs112, inclusive of service tax. The re-charge coupons have 25 per cent extra talk time. The Cell One mobile activation charges have been reduced to Rs100 from Rs200.

BSNL has also launched broadband services in 46 cities and towns in Andhra Pradesh and plans to provide about 1.58 lakh connections during the current year.
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