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Nirma to shell out Rs. 300 Cr. for Core Healthcare acquisition 

FMCG major Nirma is expected to shell out around Rs 300 Crore for the acquisition of Ahmedabad-based Core Healthcare, the largest intravenous (IV) fluids manufacturer in the country. Though a memorandum of understanding to acquire the pharma company was signed three months ago, Nirma has since neither announced the payment details nor the structure of the deal. Nirma has been eyeing the healthcare sector for a while and this would give it a solid platform in the segment.

In another related development, Mr Sushil Handa has stepped down as chairman of the company on Thuesday. Sources say he would now focus his entire energy on developing Claris Lifesciences Limited, a pharma company that he promoted about four years ago. He held about 54% stake in Core.

The revenues of Core at present are close to Rs 170 crores, mainly from the HVP segment. Its assets at Sachana, near Ahmedabad is spread over 650 acres. ARCIL had attached 60% of Core's assets earlier this year. Except for the lenders liabilities, all other liabilities are restricted and marginal. Nirma would end up with lenders liability and some other small liabilities.

(Ref : Economic Times Dated March 10, 2005)

Health Insurance Market And Third Party Administrators (TPA)

If the business of insuring people's health involves an element of gambling, what plagues this industry's growth is the distrust between hospitals and the middlemen appointed by insurance firms who scrutinize a doctor's decision for repayment. While chiefs of leading hospitals believe the third party administrators (TPAs) appointed by insurance firms to process claims, are too bureaucratic and often delay payments, there is criticism about 'over caring' by doctors leading to inflated bills.

Health insurance market in the country is dominated by the mediclaim policy of public sector insurance companies (almost 80% of the market) and their clones by private sector players like Bajaj Allianz and ICICI Lombard. Only a marginal segment of the one billion population is covered by any form of health insurance.

According to former general manager of LIC S K Mahapatra, state-owned companies are now forking out as reimbursement as much as they receive as premia a year, making the products unviable. For a health insurance product to remain viable, the outgo should not exceed 80% of the annual receipts. A leading New Delhi-based TPA for mediclaim said the PSU policy aims at covering the poor rather than making profit.

(Ref: Economic Times Dated March 15, 2005)



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Fresenius to invest Rs 10 crore in Pune Facility 

Mexican drug industry delegation visits Indian drug firms 

IVTPL launches latest DES-COSTER for coronary heart disease 


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