The Hindu : Nicholas Frame agreement expires in 2003

Online edition of India's National Newspaper
Saturday, Oct 05, 2002

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Business

Nicholas Frame agreement expires in 2003

By Our Staff Correspondent

MUMBAI OCT. 4. Nicholas Piramal India (NPIL), based on a letter received from Roche, today announced that its Frame Cooperation Agreement of 1993 with F. Hoffman-La Roche (FHLR), will come to an end in November 2003 as per terms of the agreement. The agreement gave NPIL the right of first refusal for distribution of new Roche products in India.

Accordingly, NPIL will cease to distribute six biotech products — Cymevene, CellCept, Zenapax, MabThera, Xeloda & Herceptin) in November 2003. NPIL's total turnover of these products in 2001-02 was Rs. 24.05 crores or 2.77 per cent of its turnover on a stand-alone basis.

All other biotech products imported from FHLR, excluding the above mentioned products, will continue to be distributed by NPIL for periods ranging from 2009 to 2012. The agreement does not cover the Roche products manufactured in India by Roche prior to November 1993 and subsequently by NPIL, which will continue to remain with NPIL. The turnover from these products in 2001-02 was Rs. 71.48 crores.

Also, for any locally manufactured products to be launched after November 2003, in case Roche decides to license out the product to any Indian party, the first opportunity will be given to NPIL, provided it has the technical facilities as per Roche standards and NPIL has no product that conflicts with the Roche product offered.

With this agreement, NPIL will have greater flexibility to seek out licensing for new post-1995 patented products from research-based global companies.

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