Mumbai, June 1: German multinational Hoechst Marion Roussel has forged a co-marketing alliance with a leading Indian drug company, Ranbaxy Laboratories for a range of antibiotics and anti-ulcer products.

The arrangement, however, covers only the Indian market.Hoechst managing Director Debabrata Bhadury told The Financial Express that his company may look at a strategic alliance with the Lupin group subject to the emergence of a clearer picture on the product patent regime.

``In principle, we are keen on an alliance with Lupin and the basic aim in to increase Hoechst's participation in the pharmaceutical market. However, it is subject to a better intellectual property rights regime.''

The finer details, however, could not be ascertained though analysts did not rule out an equity tie-up.

On the deal with Ranbaxy, Bhadury said it would cover products in the broad therapeutic areas of antibiotics and anti-ulcerants but did not divulge the brand names.

Industry analysts said the Hoechst's deal `made business sense' as antibiotics account for over 16 per cent of Ranbaxy's turnover and the company had significant expertise and marketing muscle in the area.

Hoechst has a field force of about 850 medical representatives and 20 clearing and forwarding (C&F) agents, while analysts put Ranbaxy's field strength (including that of Croslands) at about 1,700.

Key Ranbaxy antibiotic brands include Cifran (for urinary tract, skin infections, typhoid), Sporidex (for genito urinary, ENT infections) and Roscillin, a semi-synthetic penicillin, among others.

Hoechst's antibiotic range includes Soframycin and Sofracort and plans are on the anvil for the launch of another antibiotic Teicoplanin from the Marion Merrell Dow range.

Hoechst had acquired Marion Merrell Dow, US for $1.7 billion in 1995.Both Ranbaxy and Hoechst, on the other hand, have almost competing brands in the anti-ulcer segment.

Ranbaxy's Histac (ranitidine) had a market share of about 7.6 per cent as per ORG figures in the year 1995 with a growth rate of about 26 per cent.Hoechst's Rotane, an anti-peptic ulcerant has a market share of about 2.5 per cent and is growing at a rate of about 9.1 per cent.

On Hoechst's newly launched anti-tuberculosis range, Bhadury said, ``We have had quite a tough time, being late entrants into the market. We are still marginal players in the market and sales are expected to scale to about Rs 10 crore this year.'' The launch year of a drug is, however, not the correct indicator of its prospects. The Rs 206 crore anti-TB market is currently dominated by Lupin Laboratories.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.