CALCUTTA, July 23: The Hyderabad-based Sol Pharmaceuticals Ltd has closed down its formulations division. Sol Health Pharmacy will now manufacture and market the formulations.

Sol Pharmaceuticals' told its employees through an internal note issued by deputy manager for personnel B Ramadhar Reddy on July 4, 1997. He said bulk drug and formulations have suffered due to the changes in the global pharmaceuticals industry.

"Countries which have supported their companies by way of changes in taxation policies and other subsidies have survived and probably meeting the competition in the market. But the domestic pharmaceutical market have suffered for the last two years due to the implementation of drug policies. We are one of the companies affected," Reddy said.

Sol Health Pharmacy deputy general manager for personnel and administration V Bhaskara Reddy told the employees union on July 16 that the company will be a manufacturer, marketeer and exporter of formulations.The company has begun marketing Sol Pharmaceuticals products. Reddy said these brands were taken on loan licence under a technical assistance scheme.

Sol Health was incorporated on September 21, 1995. Its directors are C Chandrasekhara Reddy, T Uttam Reddy and C Girija Reddy. They are also on the Sol Pharmaceuticals board.

Sol Pharmaceuticals, earlier, had terminated the services of most of its field staff for holding two jobs. The company had urged them to join Sol Health. Those, who had refused the offer, were not paid their salaries for the last two months.The staff, who joined SOL Health, are in a quandary as they suddenly got letters from their previous employer implying that they had joined a rival when they had assumed that the new company is a sister concern of the Hyderabad-based drugs manufacturer.Bhaskara Reddy, in his letter to the the employees union, agreed to provide job security, but washed his hands off Sol Pharmaceuticals."If there is a feeling of job insecurity in Sol Pharmaceuticals Ltd, for reasons best known to you. You may please take up the issue with the company and resolve the matter," he wrote.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.