Mumbai, Oct 23: French multinational, Galderma SA, is believed to have applied to the Foreign Investment Promotion Board (FIPB) for permission to set up a 100 per cent subsidiary in the country.Galderma's move to go it alone is a direct fallout of the discontinuation of its marketing arrangement with the erstwhile Croslands Laboratories, now part of the Rs 1,334-crore Ranbaxy Laboratories. Galderma's products were being marketed by a separate division Global Alliances and Technologies (Glat) within the overall Croslands umbrella.
Significantly, Ranbaxy is believed to have agreed in principle to hand over part of its Glat field force to the French company for a consideration. If Galderma does eventually take on part of the Glat sales force, it would obviously help the French company save time and money involved in building up a trained sales team. No official confirmation on this was, however, available.
Sources say that any consideration payable to Ranbaxy would be for its efforts in building theGalderma brands and for effectively training the 140-strong (inclusive of managers) Glat field force. The exact number of Glat sales personnel movable to the rolls of the French company could not be determined.
Four key Galderma brands, earlier licensed to Croslands and promoted by Glat at present, will revert to the French company as per the original agreement. These brands include topical anti-acne gel Eryacne, benzyl peroxide-based anti-acne gel Benzac-AC and anti-dandruff scalp solution Ionex-T.
These brands were to be promoted by Glat "until such time as Galderma commissioned its own operations in India" and account for sales of roughly Rs 3 crore to Rs 5 crore.
Galderma, sources add, is looking at the Indian market in a big way. It is working on plans to set up an office here and tie up a manufacturing arrangement. Although the French company's agreement with Ranbaxy provides for a manufacturing alliance, sources say that Galderma is free to exercise its option and forge a toll manufacturing dealelsewhere.
Meanwhile, Ranbaxy will, however, continue to market brands of Danish firm Leo Pharma Products and Byk Gulden of Germany, originally part of Glat's portfolio. Besides the Galderma range, Glat's product basket included brands like Albothyl (for vaginitis) and Faktu (an anti-haemorrhoid) from the Byk Gulden stable, besides Leo brands like Daivonex (for psoriasis) and One Alpha (for analogue-osteoporosis). Byk Gulden has recently forged a strategic alliance with Zydus group company, Cadila Healthcare.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.