IOL Chemicals & Pharmaceuticals Ltd has announced that the Board of Directors of the Company at its meeting held on December 31, 2007, has decided to undertake the setting up facilities for the manufacture of Rebiprazole and other related products that is Omeprazole, Esmoprazole, Pantoprazole and Lensoprazole, in anti ulcer drug segment of the class proton pump inhibitors to strengthen the pharma business of the Company.
Rebiprazole is used to treat conditions where the stomach produces too much acid, including ulcers, gastroesophageal reflux disease (GERD) and Zollinger-Ellison syndrome. Rabeprazole is used in combination with other medications to eliminate H. pylori, a bacteria that causes ulcers. Rabeprazole is in a class of medications called proton-pump inhibitors. It works by decreasing the amount of acid made in the stomach.
For manufacture of these products, acetic anhydride will be used as raw material, existing product of the Company, in addition to other raw materials.
The total capex for setting up these facilities will be about Rs 60 crore, which will be partly financed by way of equity terms loans and internal accruals.
The Board and the members in their meeting has already approved to raise the funds by way of QIP or / and FCCB to party finance the future expansions of the Company.
The Board noted that the implementation of ongoing expansion schemes is going as per schedule. In addition, the Board has approved the transfer of 9,80,000 equity shares from Punjab State Industrial Development Corporation Ltd, state level financial institution, one of the promoters to Mayadevi Polycot Ltd, Promoter of the Company as per the terms of the financial collaboration agreement.
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Union Budget