Companies & Sectors
EU regulator fines Ranbaxy, 8 others over Citalopram generic delay

The EU has imposed a fine of Euro 93.8 million on Danish pharmaceutical company Lundbeck and fines totalling Euro 52.2 million for delaying market entry of cheaper generic versions of Lundbeck’s branded citalopram


The European Commission (EU) today imposed a fine of Euro 146 million on nine pharma companies, including Ranbaxy Laboratories, for delaying market entry of cheaper generic versions of Danish company Lundbeck’s branded citalopram, a blockbuster anti-depressant.

According to information available on the EC website, Ranbaxy Laboratories has been fined Euro 10.32 million (over Rs80 crore).

“The European Commission has imposed a fine of Euro 93.8 million on Danish pharmaceutical company Lundbeck and fines totalling Euro 52.2 million on several producers of generic medicines,” EC said.

In 2002, Lundbeck agreed with each of these companies to delay the market entry of cheaper generic versions of Lundbeck’s branded citalopram, a blockbuster anti-depressant, it added.

“These agreements violated EU antitrust rules that prohibit anti-competitive agreements (Article 101 of the Treaty on the Functioning of the European Union — TFEU),” EC said.

The generic companies which have been fined are Alpharma (now part of Zoetis), Merck KGaA/Generics UK (Generics UK is now part of Mylan), Arrow (now part of Actavis), and Ranbaxy.

The fine on Ranbaxy Laboratories and Ranbaxy (UK), is Euro 1,03,23,000.

Commenting on the development, European Commission vice-president JoaquAlmunia (in charge of competition policy), said: “It is unacceptable that a company pays off its competitors to stay out of its market and delay the entry of cheaper medicines.

“Agreements of this type directly harm patients and national health systems, which are already under tight budgetary constraints. The Commission will not tolerate such anticompetitive practices”.

Reacting to the fine, Ranbaxy Laboratories said: “Ranbaxy is disappointed with the decision by the European Commission to rule its patent settlement agreement with Lundbeck, covering the molecule Citalopram, anti-competitive, and intends to appeal the decision to the General Court of the European Union.”

These events took place over 10 years ago, and the company considers that the Commission has misunderstood the facts and misapplied the law, it said, adding it believed it has strong grounds of appeal.

Citalopram is a blockbuster anti-depressant medicine and was Lundbeck’s best-selling product at the time.

EC said after Lundbeck’s basic patent for the citalopram molecule had expired, it only held a number of related process patents which provided a more limited protection. Producers of cheaper, generic versions of citalopram therefore had the possibility to enter the market.


Mumbai property tax: Should you pay the tax, or wait for the HC to do something?
The last date for paying property tax in Mumbai is 30 June 2013.  The big question today is, should people pay their taxes or will the high court release its order in favour of many who will need to pay their taxes based on the flawed method of the Ready Reckoner
Moneylife Foundation has conducted several seminars and counselling sessions on the property tax issue affecting Mumbaikars, ever since the Municipal Corporation of Greater Mumbai (MCGM) sent out demands for its hefty revised property taxes with arrears for the past three years. Anomalies in computation and the hefty new taxes have caused serious concern for home and property owners. The new taxes carry the threat of hefty penalties for non-payment; however after public outrage over the short time allocated to pay up, the MCGM deferred tax payment deadline from March to June. 

It is now past mid-June and people are confused about what to do next. Several persons have called us at Moneylife and are calling property experts to find out whether they are obliged to pay by 30 June 2013. When the revised property tax notices were sent out, several organisations, including the Property Owners Association had announced plans to move court, but we find that none of the cases have been filed yet.
We spoke to several experts for their guidance on what people should do. Well known social activist Ashok Ravat tells us that he will be filing a Public Interest Litigation (PIL) in this regard on Friday and the hearing is expected to be on the following Monday. His advice is that people should pay their tax to the collectors (namely housing societies) but urge the management committees not to deposit the money with the MCGM until the due date, just in case there is a positive response from the courts.
Rajendra Thacker, a veteran of many public interest litigations and president of the Forum For Fast Justice, who has already filed the first petition on the increased property tax issue suggests that people should not hurry in paying their taxes at least for this month, even if it means risking a small penalty. His suggestion is to give the organisations planning litigation a little more time to file their cases. In his view, the penalty for not paying your tax before 30 June 2013 is 24% for a year, or 2% for a month. Mr Thacker says that if the Bombay High Court passes the order in favour of the citizens, it will be a blessing for all. Even if the hearings don’t happen before the 30th of June, it is bound to happen shortly thereafter and his group is hopeful that the court will consider their stand sympathetically and grant a stay.  But if the high court supports the BMC in this flawed method, Mumbaikars will need to pay the tax for their property with an additional 2% for the month as a penalty charge. But it is a risk worth taking, because if a stay is indeed granted later, then the money gets stuck with the MCGM until the case is resolved. He says, many more associations will be filing petitions and taking up this issue in a more serious manner by the end of this week.
The Property Owners’ Association, with its executive president BR Bhattad, is also contemplating to approach the high court on 24 June 2013 where Advocate Devrajan will be fighting the case on behalf of the Association.
Mumbaikars should collectively appeal to the municipal commissioner and take up the issue. Another important issue that needs to be brought to light is the massive increase in tax rates of those flats above 500 sq ft as well as about paying the hefty property tax bills, with arrears for the past three years. This is not a rational solution and more people need to voice out their opinions on objecting to pay the taxes for three years. Various associations should also write to the Standing Committee about the taxes levied on people who have purchased flats after the year 2004.
To recap Moneylife’s efforts with regard to property tax, we had our first talk on the increased burden that the property tax has caused on the people of Mumbai on 9 February 2013 with Ashok Ravat, a noted civic activist and founder-convener of the Shivaji Park Advanced Locality Movement and Advocate Godfrey Pimenta, President of Sahar Citizens Forum and an ardent RTI activist. Click here for more on the session.
This was followed by repeated one-to-one and group counselling sessions by Mr Ravat who guided Moneylife Foundation members on how the capital value method is flawed as it uses the Ready Reckoner value, which is not supposed to indicate real value. This method proposed by the BMC, has ‘intentional’ errors. The new system, the capital-value-based tax system is totally flawed and hasn’t been accepted by any other municipal corporation, except the BMC. 
We had another talk on how to best tackle the property tax issue by Mr Thacker, on 5 April 2013. Mr Thacker was kind enough to ask the attendees to send their bills (both old and new) to his office, so that he and his team could go further with its investigation into the matter. Click here to read more on the session.



nagesh kini

3 years ago

Jago Mumbaikar, Jago before it is too late. Join in with Ashok Ravat or Rajendra on their PIL.

Sensex, Nifty still in no man’s land: Wednesday Closing Report

The Nifty has to close above 5,840-5,855 for a fresh upmove. In case it falls sharply below 5,785 we may see a fall right up to 5,680

The market settled with minor gains amid volatile trade on nervousness ahead of the announcement from the US Fed about the future of its stimulus programme. The Nifty has to close above 5,840-5,855 for a fresh upmove. In case it falls sharply below 5,785 we may see a fall right up to 5,680. The National Stock Exchange (NSE) recorded a volume of 50.82 crore shares and advance-decline ratio of 740:644.
The domestic market opened flat tracking the Asian markets which were mostly in the red as investors await details from the two-day US FOMC meeting. US markets closed higher on Tuesday on hopes that the Federal Reserve will retain its stimulus programme till the time the employment rate goes down to 6.5%.
The Nifty opened eight points lower at 5,806 while the Sensex resumed trade at 19,224, one point up. Selling pressure in oil & gas, auto, consumer durables, PSU and capital goods stocks led the choppy market lower in the first hour of trade.
The decline saw the benchmarks touching their lows with the Nifty falling to 5,778 and the Sensex going back to 19,100. However, select buying in metal, consumer durables and realty counters at the lows saw the market picking up some momentum in late morning trade.
The benchmarks made a feeble recovery attempt in noon trade but selling pressure kept the indices lower. A struggled upmove a shortly after 2.00pm finally saw the market emerging into the green, albeit for a short while. 
Selling in blue chips like Infosys, ONGC, ICICI Bank, TCS and Tata Motors pulled the benchmarks down once more. The market received its much-needed push in the lat half hour of the trading session from the consumer durables and metals sectors, which helped the indices hit their highs. The Nifty went up to 5,828 and the Sensex rose to 19,274 at their respective highs.
The market closed near the highs with the Nifty inching nine points (0.15%) up to 5,822 and the Sensex rising 22 points (0.12%) to settle at 19,246.
Among the broader indices, the BSE Mid-cap index gained 0.53% and the BSE Small-cap segment advanced 0.50%.
The top gainers in the sectoral segment were BSE Consumer Durables (up 1.96%); BSE Metal (up 1.28%); BSE Realty (up 0.58%); BSE Oil & Gas (up 0.56%) and BSE TECk (up 0.36%). The main losers were BSE Auto (down 0.67%); BSE Power (down 0.59%); BSE PSU (down 0.35%); BSE Healthcare (down 0.29%) and BSE IT (down 0.27%).
Out of the 30 stocks on the Sensex, 15 settled higher. The top gainers were Bharti Airtel (up 2.83%); Hindalco Industries (up 2.66%); Sterlite Industries (up 2.65%); Jindal Steel & Power (up 2.52%) and Tata Steel (up 2.05%). The major losers were Tata Motors (down 1.80%); Dr Reddy’s Laboratories (down 1.53%); NTPC (down 1.39%); TCS (down 1.33%) and Hero MotoCorp (down 1.26%).
The top two A Group gainers on the BSE were—Future Retail (up 4.83%) and Idea Cellular (up 4.52%).
The top two A Group losers on the BSE were—MMTC (down 4.98%) and Indian Oil Corporation (down 3.06%).
The top two B Group gainers on the BSE were—Venus Universal (up 25%) and Scanpoint Geomatics (up 19.94%).
The top two B Group losers on the BSE were—Tijaria Polypipes (down 19.8%) and Nitta Gelatin India (down 19.39%).
Of the 50 stocks on the Nifty, 28 ended in the in the green. The main gainers were Hindalco Ind (up 3.26%); Sesa Goa (up 2.89%); Ambuja Cement (up 2.54%); Bharti Airtel (up 2.40%) and JSPL (up 2.33%). The key losers were Tata Motors (down 2.08%); Hero MotoCorp (down 1.81%); Dr Reddy’s (down 1.74%); UltraTech Cement (down 1.66%) and Tata Power (down 1.62%).
Markets in Asia settled mostly lower on uncertainty about the outcome of the US FOMC meeting. The Japanese government’s proposed moves to boost its economy also kept investors edgy.
The Shanghai Composite declined 0.73%; the Hang Seng dropped 1.13%; the Jakarta Composite declined 0.70%; the KLSE Composite shed 0.07%; the Straits Times contracted 0.49%; the Seoul Composite lost 0.65% and the Taiwan Weighted settled 0.05% lower. Bucking the trend, the Nikkei 225 surged 1.83%.
At the time of writing, the key European markets were marginally lower and the US stock futures were trading with minor gains.
Back home, foreign institutional investors were net sellers of stocks totalling Rs597.37 crore on Tuesday. On the other hand, domestic investors were net buyers of shares amounting to Rs582.65 crore.
Clariant Chemicals (India) today said it has made an investment Rs 38 crore in pigments business at its Roha site in Maharashtra. The investment has been made as a part of an initiative to help accelerate the company's business and support R&D to respond faster to local product development needs, a company statement said. The stock gained 1.28% to close at Rs427 on the NSE.
Pharma major Glenmark's US generics arm— Glenmark Generics—has received final approval from the US Food and Drug Administration to sell riluzole tablets, indicated for the treatment of sclerosis, in 50 mg strength. Based on IMS Health sales data for the 12 month period ended March 2013, riluzole, used in treating nervous system disorder, generated sales of $64 million. Glenmark fell 0.57% to close at Rs570.65 on the NSE.
Tata Coffee has inaugurated a premium coffee extraction plant at its instant coffee manufacturing facility in Theni, Tamil Nadu. The new extraction plant will help the company position its freeze dried coffee product at premium levels and increase its overall capacity by 30%. The stock declined 2.31% to close at Rs1,080.50 on the NSE.




3 years ago

This is volatile time extremely difficult to play the high beta as most of the time the stop losses get triggered.
Now to play this market is by slow and steady winning the race, they will not give daily huge moves but sure to give handsome return in few weeks time.
The high dividend yield are those. The HGS ( Hinduja Global Solutions) have announced 4th time consecutive Rs 21 per share dividend , price is hovering around 300 ( Yield is close to 7%) ,good bet to pay till record date is announced and the same nears.
One can also buy Petronet LNG the daring of advisers which has announced rs 2.50 per share dividend which is round the corner , The Praj Industries also is a good bet the dividend yield works out to close to 5% return !!!

Beauty of investing in these are , one can continue to hold these shares without any hassle for medium term also, all are paying handsome dividend year after year.

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