Cadila Healthcare launches generic drug for treatment of Parkinson’s

Drug firm Cadila Healthcare Ltd said it launched a generic Pramipexole tablets, used for treating Parkinson's disease in the US market.

The company's subsidiary Zydus Cadila launched Pramipexole tablets in the strengths of 0.125mg, 0.25mg, 0.5mg, 1mg and 1.5mg, Cadila Healthcare said in a filing to Bombay Stock Exchange (BSE).

According to healthcare information solutions company, NDC Health, the sale of Pramipexole tablets in 2010 is estimated to be $632 million.

Pramipexole's patent, which has expired, was held by German drug maker Boehringer Ingelheim. Parkinson's disease is a progressive disorder marked by muscle rigidity, weakness, shaking, tremor, and eventually difficulty in walking and talking.

On Thursday, Cadila Healthcare shares ended 0.8% up at Rs694 on the Bombay Stock Exchange, while the benchmark Sensex closed 0.9% down to 20,497 points.

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    9 years ago

    we know from our souces that you are launching your generic div. so we are interested to handle all rajasthan as c&f or distributor

    PMS in troubled waters
    Frequent churning of portfolio, high management fees followed by dismal returns and dwindling profitability is leading to several Asset Management Companies (AMCs) exiting the portfolio management service (PMS) business. Such exits would have not been normally noticed because PMS is a privately sold service. But one of them, from Franklin Templeton, has turned controversial after the fund house abruptly exited from the PMS business, leaving the investors and distributors high and dry. According to distributors, Franklin Templeton has failed to offer enough reasons to them and investors for impetuously pulling out two equity products—FT Select and FT Opportunities.

    The distributors are now angry with the fund house for putting them in an awkward situation in front of the clients, to whom they were once encouraged to sell PMS. “During the bull run, AMCs tried to convert PMS from a large value item into a retail item. But as the market crashed, they realised that it was not the right place for them to be,” said T Srikanth Bhagavat, managing director, Hexagon Capital Advisors Pvt. Ltd. Zankhana Shah, co-founder, Moneycare Financial Planning Ltd, said, “I was surprised with Templeton’s move. I had to incur 50% loss because of this.”

    In an attempt to underplay the crisis, Harshendu Bindal, president, Franklin Templeton Investments India said, “We haven't closed down our PMS business but pulled out only two equity products—FT Select and FT Opportunities.”

    Before 2005, if an investor wanted to enter the PMS business, the entry level charge used to be anywhere between Rs50 lakh and Rs1 crore. During 2005- 2006 when the stock market was bullish, AMCs had slashed the PMS entry level charge between Rs5 to Rs10 lakh in a bid to attract more retail customers.

    Besides Templeton, DSP BlackRock Investment Managers has also shut down its PMS business.

    The profit-sharing fee charged by most PMS houses is also on the higher side. Most PMS houses charge 20% more than the hurdle rate profit-sharing ratio. Even if the scheme shows poor performance, the PMS house charges a fixed fee which is very high. Again there is no control on the cost in terms of churning and the brokerages paid to distributors. There is no transparency in the process.

    Some distributors don’t even like PMS. “I do not like PMS schemes and I do not sell these schemes. It’s my personal choice as I am not convinced with what fund houses like Templeton have done,” said Kolkata-based Brijesh Dalmia, founder, Dalmia Advisory Services.
    When asked whether PMS is a dubious product because of high costs and poor returns, Dalmia said,”PMS is a good product but the paradox is that customers do not understand it. PMS is sold as a customised product, but in reality, it is not. This is because the cost is very high compared to other investment options available in the market. The taxation is not suitable for customers. Besides, there is no control on the churning part by the fund house or the fund manager.”
    “I find there is no logic to differentiate PMS from a mutual fund. The PMS schemes are operated in a manner where there is no fixed fee structure and capping on expenses on churning. This is obviously not in the interest of the client. In the last couple of years, I have not seen any PMS which has beaten the benchmark index of any diversified equity fund. Of course, PMS will be promoted by the distributors and financial advisors because of high commission offered by the fund houses which range anywhere between 2%-4%,” said Dalmia.
    Vidyut Kumar Ta & Pallabika Ganguly [email protected]
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    Competition taking its toll—Bharti Airtel slashes prepaid tariffs
    Bharti Airtel Ltd, India's largest telecom operator, has announced a new tariff plan, Advantage Airtel, to its prepaid subscribers that offers local and national long distance calls at 50 paise per minute. However, there is a catch; you will have to pay an additional Rs50 per month to avail these rates.
    Time and again all mobile services providers come out with various tariff plans, the latest from Airtel has its own reasons. "The surge in Tata Teleservices Ltd's (TTSL) August net-adds, clearly suggested that incumbents were losing traffic and minutes of use, with rapid proliferation of multiple SIM ownership. Post the latest cut, Bharti’s tariffs compare well with TTSL's ‘normalised’ GSM tariffs, though still higher than the ‘promotional’ or limited period, rates offered by TTSL," said Anand Rathi Financial Services Ltd, in a report.
    During August, TTSL added 3.4 million subscribers while the same for Airtel was 2.8 million. Idea Cellular added 1.5 million new subscribers, while ADA group company, Reliance Communications Ltd (RCom) could garner only 1.7 million subscribers, in both GSM and CDMA segments.
    TTSL had showed a healthy growth in new additions in July as well with 2.2 million new subscribers. “While TTSL has shown a growth of 50% or more in new subscriber additions in July and August 2009, other telecom operators have shown flat or negative growth in new additions in the same period,” TTSL said in a release.
    The wireless industry is set to witness a flurry of new entrants or network expansion by existing smaller players, resulting in 12-14 players in each circle from 5-6 at present. With the backing of experienced global and regional players and about $6 billion of initial funding committed by them, the new entrants appear well-poised for their initial rollout plans. Also, these players will have a shorter time to market and lower capacity expansion needs due to a predominantly shared infrastructure model.
    However, average revenue per user (ARPU) of incremental subscribers—given that growth would now come from the ‘lower rungs of the economic pyramid’—is likely to be at a steep discount to the industry average, said IDFC-SSKI Securities Ltd, in a report.
    As past experience suggests, the lowest ARPU is often reported by the latest entrant in any circle—for example, Aircel’s ARPU in Kolkata, launched in May 2008, Bihar and Himachal Pradesh, both launched in January 2007, is at a discount of 73%, 56% and 64% respectively to the average ARPU in these circles, the report added.
    -Yogesh Sapkale [email protected]
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