NP And Reckitt Confirm Indian OTC Deal

Leading Indian pharmaceutical company Nicholas Piramal and Reckitt &Colman have, as expected, signed a joint venture agreement to set up Reckitt Piramal for over-the-counter product marketing (Marketletter September 1).

The new company, which will commence operations in January 1998, will be 40% owned by Reckitt, while its Indian subsidiary will have a 20% stake. NP will own the other 40% of the JV, which will be based in Mumbai.

Reckitt said it is not making a financial investment in the new company, but the JV will give the companies the opportunity to develop markets for established products such as the analgesics Disprin and Saridon, as well as its antiseptic Dettol, which is India's fourth best-known brand, according to the Financial Times. The alliance will then be developed to introduce, through local manufacture, newer OTC products, such as the heartburn remedy Gaviscon and the cholesterol-lowering product Fybozest.