Beem Healthcare, which commenced operations on January 1, 1996, is the company's over-the-counter (OTC) products marketing subsidiary.

Industry sources said while Knoll had disposed key OTC brands like Burnol and Coldarin, the tepid response to other brands like Sacchrin, Mylol, Cherana and Fenox may see the company retain these in its portfolio.

This in turn may see Knoll merging Beem Healthcare since the declining thrust on the OTC business may no longer justify the existence of a separate marketing entity, sources added.

Moreover, there has also been a change in the licensing arrangement for brands like Strepsils, Strepsils Icy and Sweetex, originally marketed by Beem Healthcare. These three brands generated sales worth about Rs 17 crore.

Top Knoll Pharma officials declined to comment on theissue and said that such decisions were made by the board. Industry sources indicated that the board may consider such a proposal shortly.

Analysts say with Knoll selling off its main OTC brands and Boots Plc, UK, close to forging an alliance with Nicholas Piramal for Strepsils and Sweetex, "a merger/winding up of Beem Healthcare could possibly be interesting options."

Gross sales of the seven brands originally marketed by Beem Healthcare, excluding Strepsils and Sweetex, was roughly Rs 23 crore, of which over 75 per cent came from analgesic and antipyretic Coldarin, burns ointment Burnol and antacid Aciguard.

Boots, UK, has already issued a notice indicating its desire to discontinue its licensing arrangement with Knoll Pharma for Strepsils, Strepsils Icy and Sweetex. These two brands and one brand extension were among the products retained by Boots when it sold part off its global business to Knoll, a BASF group company. The licensing arrangement with Knoll in India ceased to exist as on March 31,1998.

Knoll has already sold Burnol to Reckitt & Colman and Coldarin to Johnson & Johnson, and was originally examining the option of selling all the remaining brands along with Beem Healthcare.

Beem Healthcare has a sales force of 50, though it is unclear if the company's recent voluntary retirement scheme (VRS) for medical representatives above the age of 40 was applicable to it.

Knoll Pharma also has two other wholly-owned subsidiaries, Lenbrook Pharma and Valencia Pharma. Lenbrook, engaged in export development activities, is expected to undertake marketing of specialty drugs, while Valencia is currently a dormant entity.