Renata's jt venture with Indian co to market anti-cancer products

Express (September 08, 2011)

Renata Limited in co-operation with Indian Natco Pharma will set up a pharmaceutical company in a bid to develop and market anti-cancer products in the country at affordable prices.

A memorandum of understanding (MoU) was signed last week between the two companies regarding the joint venture envisages for setting up API and Dosage form manufacturing facilities in Bangladesh, a statement issued by Renata Limited said Wednesday.

"The purpose of the joint venture for setting up 'Renata Oncology Limited' is also focused on to exploit opportunities for exports in the international market," the statement said.

According to Dhaka Stock Exchange (DSE) website the company's expected initial investment for the said MOU will be $1.0 million.

Renata expects the new company will start operation by the end of 2012 and there will be no significant impact on earnings per share for the next 2 years, the website said.

Natco Pharma is a specialty pharmaceutical company developing, manufacturing and marketing pharmaceutical products. Natco has leadership position in Oncology segment in India. Apart from a branded generic business Natco is engaged in Discovery research and development of novel drug delivery systems.

The last traded price of per Renata share was Tk 12500 Wednesday, 0.56 per cent lower than that of Tuesday.

Chairman of Renata Limited SH Kabir, in its annual report 2010, said, significantly, we entered into negotiations with a foreign company to set up an Active Pharmaceutical Ingredient (API) facility to take advantage of TRIPS. If these negotiations are successful, we expect to begin construction in the second half of 2011.

The public limited company incorporated in Bangladesh in 1972 as Pfizer Laboratories (Bangladesh), under the Companies Act, 1913 and was renamed as "Renata Limited" in 1993.

The authorized capital of the Company is Tk 500 million (Tk 500,000,000) and paid up capital Tk 180.748 million (Tk 180,748,000), according to its annual report.

The Company manufactures and sells various pharmaceutical, animal health, animal nutritional, oral saline, hormone and other medical products in the local market. The Company exports a few of its pharmaceutical products to some foreign markets.