The company has called for an extraordinary general meeting (EGM) on October 7, 1998, to seek shareholder approval. "The company is considering various options available for restructuring its operations and improve profitability," Natco Pharma sources said. To help facilitate this, Natco Pharma plans to sell any of its divisions/facilities, business rights and tangible/intangible assets, the sources added.

According to an estimate, the sale of the division and other assets will fetch about Rs 150 crore for the company. This will enhance the company's net worth and enable it to improve profitability, the sources said.

The company had developed a bulk drug manufacturing unit at Mekaguda village in Mehboobnagar district of Andhra Pradesh, as per the US-FDA norms. The facility includes quality control andresearch and development departments apart from three manufacturing plants. Natco Pharma manufactures time-released drugs as contracted by companies like Ranbaxy, SmithKline Beecham and Cadila.

Natco Pharma, which is engaged in manufacture of bulk drugs, formulations, parenterals and biotechnology products, now plans to focus on high-value therapeutic segments like antibiotics, anti-ulcers and anti-cancers, the sources said.