London based Healthcare Giant set to be the new promoters of Dr. Datsons Labs Ltd. Dr. Datsons Labs aggressive marketing & new orders worth over 400 crores will sail through with the new Cash Rich Promoters
Debashish Mishra
It is widely known that Dr. Datsons Labs Ltd is in the process of one time settlement with the Bank which is to the tune of only 80 crores & clearly the assests of the company can easily be valued at about 175 Crores . With the new London based promoter coming on Board to take control of the company for a complete overhaul where the management of the company is already in place with a professionally managed top management & the work force of 250 employees. The present structure of the company is run by institutions spearheaded by Dr. Rajendra Kamat as the Vice-Chairman & MD, Mr Saleem Talim as the CEO, & Mr. Shashikant B. Shinde as Executive Director. Mr. Mahesh Vaidya has been appointed as Non Executive Chairman of the Company with effect from February 15, 2015 as per the company’s announcement to the BSE. The top level sources to the London based healthcare Firm’s leadership reveal that a deal has indeed been stuck with Dr. Datsons Labs Ltd for an undisclosed amount, but a definite picture of recovery back to business. The deal involves the taking over of the company as new promoter Group. The London based Company besides having operations worldwide is also setting up a huge $200m multi-specialty hospital in Mumbai for cancer and trauma surgery, due to be commissioned in August 2015. The Group clearly wants to use Dr. Datsons Labs Ltd by making it as a hub to supply quality medicines to the world market. The old clients of Dr. Datsons Labs will also make a comeback to do business with a reasonable price offering high quality standards..
Sources close to Pharmaleaders reveal that a big time London based group having worldwide operations with a total value of more than 5 Billions $ with interest in Healthcare, finance, banking operations is indeed set to take over Dr. Datsons Labs. The talks between the two companies are almost complete where the London based company has constituted a project management group consisting of consultants of repute in healthcare as well as financial background well versed with the present market conditions. It is believed that the new promoters will streamline the operations with manufacturing, production, R&D, NDDS, NCE’s & additional capabilities to foray into cancer research. The present valuation of the company is definitely much bigger & the regular business will be hassle free once the new promoter group list the stocks outside india. The Regulatory & statutory Bodies in Singapore or in London stock exchanges are definitely far better than India & the company can post a turnover of 500 Crores. The New formation will retain the top management executives.
It may be recalled that with the new management in Board, the company has bagged some of the most enviable orders from both overseas & domestic companies to exports in anti-malarial & anti-cancer drugs. Some of the top orders include Eubage Laboratory, the Belgium-based manufacturer of nutrients and nutritional supplements, to invest $ 17 million (about Rs 104 crore) 20 nutraceutical products to be manufactured at their Pune formulations facilities, an estimated 80 crore order from Yemen’s Al-Mugdh Pharma for anti-malarial drugs, partnership with Clinton Foundation to supply Anti-Malarial Drugs to Eliminate Malaria on UNITAID-CHAI Malaria Treatment Project 2015. Lately Dr. Datsons Labs also received order from a Delhi based exports company through an Exclusive Contract Manufacturing Partnership for Cancer Drugs worth 120 Crore with Dr. Datsons Labs Ltd to be exported to Europe. In addition to this Dr. Datsons Labs Ltd has already on board some top domestic players such as Glenmark, Universal Healthcare, Pharmed Europe, Ltd. and Zenufa Labs among others. To the advantage of the Acquirer are some top facilities. Dr Datson’s core strength lies in the research and manufacture of quality lozenges, controlled substances in formulations, anti-malarials and niche APIs. And CRAMS . The Company’s culture of manufacturing excellence is centered on quality control, quality assurance, in-process control guidelines and training. Corporate Performance Review of the Company The Company’s manufacturing locations are integrated and linked by high-speed networks to deliver products to markets at the right time and price. The Company’s facilities are UK-MHRA and EU-GMP-compliant, and ISO 9001:2008, ISO 14001:2004 and ISO 22000- certified; these enhance the confidence of global Pharma players. The Company designed the quinine extraction equipment in-house while maintaining stringent quality parameters, emerging as one of the most cost-effective quinine manufacturers. The Quinine Sulphate and other salts received approvals from US, EU and Canadian customers.
The reason for the company to sell the business to the London based group is quite clear that the company has been facing liquidity issues for Its working Capital Requirement, hence performance of manufacturing operations are greatly affected , to overcome the same Dr. Datsons Labs had undertaken steps to raise equity through sale of stake , bringing in strategic investors and even selling the assets so that the company gets in required funding for its Working Capital & Capex Program. Dr. Datsons was looking for long term investors who can take forward the legacy of the company.
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