Glenmark, Tasc merger ratio fixed at 1.8:1

The Mark Saldanha-promoted unlisted Glenmark Labs and the Thakar family-controlled Tasc Pharma are amalgamating their operations to form a vertically integrated company. The name of the merged entity is yet to be decided.

The merger ratio of Tasc Pharma and Glenmark Labs is fixed at 1.8: 1. Post amalgamation, the promoter holding in the company will be 63 per cent, of which Mark Saldanha will hold around 53 per cent with the Thakars accounting for the rest. While institutional investors will hold around 15 per cent, the public holding will be 22 per cent.

The amalgamated entity has given a revenue guidance of Rs 590 crore and profit guidance of over Rs 90 crore for the financial year 2006.

According to the company, growth will come from contract research mandates besides biopharmaceuticals, introduction of high value active pharmaceutical ingredients (APIs) and research and development-based services.

Mark Saldahna, managing director of Glenmark Labs said, "Our amalgamation with Tasc will not only allow us to backward integrate in terms of our API requirements but also allow us to enhance our potential owing to wider product portfolio, better market penetration and position besides comprehensive R&D capabilities."

The new combined entity is expected to leverage Glenmark laboratories presence in Europe, Australia and Latin America to market and supply Tasc's range of API and related formulations

Glenmark Laboratories has an US FDA-compliant facility at Goa. In the domestic market, it offers around 150 products with focus on niche therapeutic areas. According to the company, it has identified biologicals as its core focus area.

Tasc Pharmaceuticals is an API company with multi-product facilities, exporting to over 35 countries.