Financial Daily from THE HINDU group of publications
Friday, Feb 14, 2003
Financial Daily from THE HINDU group of publications Friday, Feb 14, 2003 |
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Corporate
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IPR Markets - IPOs Divi Labs geared for IPR regime Our Bureau
CHENNAI, Feb. 13 AHEAD of its public issue next week, Divi Laboratories has indicated that its business model has been designed to deal with the proposed changes in patent regulations after 2005. In order to fulfil India's World Trade Organisation (WTO)-related obligations, post-2005, Indian patent laws will be changed to recognise product patents as against merely process patent at present. Divi Labs is approaching the equity market on February 17 with a public issue of 32.04 lakh shares at a floor price of Rs 130 per share (public offer is through the book building route). About 60 per cent of the public issue, or 19.35-lakh shares, will come from existing shareholders such as Peregrine Capital India and Kotak Mahindra Venture Capital Fund. Mr Murali K. Divi, Chairman and Managing Director, Divi Labs, said that the promoters would not be reducing their equity stake in the current issue. Recounting the company's strategy at the outset, Mr Divi said, "we start a company that respects Intellectual Property Rights (IPR), and builds a plant that meets international standards, there should be opportunities." Divi Labs draws about 72 per cent of its revenue by selling bulk drugs (chemical ingredients in tablets) largely to Europe and the US. The remaining revenue comes from custom synthesis for other firms and manufacture of raw materials that go into making peptides, said Mr Divi. According to him, the company is working on a custom synthesis of 98 molecules for other companies. He declined to disclose names in deference to "confidentiality agreements". The third segment of Divi Labs' business handles linking agents that goes into manufacture of peptides.
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