Fulford India:

© A subsidiary of Schering Plough–USA, which upped its holding in FIL from 40% to 50.77% by subscribing to 700,000 new equity shares at Rs 575/- per share and in subsequent open offer, further increased its stake to 53.93%.

© Company would use these funds (Rs 83 crore on Dec 31, 2007) to strengthen its position in market and act on strategic business growth opportunities, including participating in conducting clinical trials (at present conducting phase III trials for some of the global brands of the parent company) and for external collaborations / in-licensing opportunities in the post-product patent regime.

© Increasing commitment of the parent is indicative of likely larger involvement of Fulford India in global scheme of things and also considering that Schering Plough has recently acquired pharma and animal health businesses of Akzo-Nobel’s Organon Bio Sciences globally.

© FIL is present in therapeutic segments of allergy & respiratory, arthritis & immunology, anti-cancer, cardiovascular, hepatitis, sun care, skin disorders and systemic anti-infectives and is involved in developing advanced therapies for management of rheumatoid arthritis and psoriasis, while strengthening its position in hepatitis therapy.

© Company plans to grow top-line aggressively with new launches from the parent and from possible in-licensing opportunities of non-Schering Plough products and / or brand acquisitions. Thus, over next 3 years, company’s top-line will grow at accelerated pace than industry (may be ~ 20% p.a.) with launch of new products and operating leverage will help to improve profitability (operating margin).

In Q1 CY 2008, Net sales were up by 4% to Rs 31.37 crore. OPM% dropped to -1.24% (+1.16%) because of 35% increase in Other expenses of Rs. 12.56 crore. Consequently, PAT dipped to Rs 40 lakh (Rs. 1 crore). FIL is cash rich company with surplus cash on hand of Rs 214/- share.