Analysts, however, say the company's task is expected to be relatively less daunting given that this formulation has been granted a 20-year product patent by the department of Commerce, Patent & Trade Marks Office, US.

JB Chemicals chairman and managing director JB Mody, told shareholders at the annual general meeting (AGM) on Friday that the controlled release formulation of ranitidine and nifedipine have already been granted product patents in South Africa.

Later, Mody told The Financial Express that the company had been working on the ranitidine formulation for almost seven years. "Given that the product's market in the US aloneis worth $3 billion, even a 5 per cent share of this will translate into handsome gains for the company," he said.

The company was in negotiations with certain multinationals for a proposed strategic marketing alliance in the US, though details had not been finalised, he added.

Reorienting the company's strategic blueprint in a changing market scenario will be the key differentiator in increasing market share, Mody said. Moreover, with over 100 countries having signed the GATT accord, the driver to growth and success will depend on developing new drugs and formulations in-house. "JB Chemicals is conforming itself to this new environment. It has two well-equipped research and development (R&D) centres where the quest for perfection has always been a way of life," he added.

The company has launched a slew of new drugs including products for vaginitis, gingivitis, periodontitis, pelvic inflammatory diseases and diarrhoea. Besides, it has also forged a technical collaboration with Fresenins GmbH, Austriafor marketing their specialty products for chronic constipation, prehepatic and hepatic coma.

The company has also enhanced its force of medical representatives to 400 from 320 to explore new market opportunities. These representatives will support JB Chemicals' vast distribution network comprising 15 branch offices in nine states, 1,100 stockists and four super stockists in four states.

The company is targeting a turnover of Rs 225 crore for the fiscal ending March 31, 1999, even as it has no major capital expenditure plans during the year. The board had earlier announced a 1:1 bonus by capitalising a sum of Rs 7.26 crore from the company's free reserves.

For the first quarter ended June 30, 1998, the company posted a 28 per cent increase in net profit to Rs 5.10 crore, against Rs 3.97 crore in the corresponding period of 1997-98. Total income was up 8 per cent to Rs 41.30 crore.