December 29, 2003

Sami Labs plans listing in US stock exchanges, merger of associate cos

Bangalore-based Sami Labs Pvt Ltd is exploring at the possibility of getting listed in the US equity markets. The international listing will be done along with its IPO in the latter half of fiscal 2004. Ernst & Young is already working on a feasibility report on the company's IPO.

Confirming the company's plans Dr Muhammad Majeed, chairman & managing director, Sami Labs said, "We are seriously considering an international listing along with the IPO. Considering our experience of more than 15 years in the US the listing process should be smooth." "It will take about a year for the formalities and paper work to complete. The company will be utilising the proceeds of the international listing or the IPO for its expansion activities," he added.

In the meanwhile, the company is thinking of merging its business concerns Organic Aromatics, Anju Phytochemicals and the US-based Sabinsa Corporation, under a single entity called Sami Labs. E&Y will assist the company in the merger. "The merger will enhance the management efficiency of the company. E&Y will soon furnish its report on merger, which should happen in the first quarter of 2004. As per our estimation, the company will not encounter much restructuring costs in the merger process. No work force would be shed during the process," he said.

Sami Labs researches and manufactures herbal-based medicines and has so far invested close to Rs.60 crore in four production units at Bangalore, Singasandra, Kunigal and Mysore. Over the years, Sami has built up R&D team of over 100 scientists.

The company recently received US patents for three new active ingredients - Tetrahydrocurcuminoids (THC), Coleus Oil and ZeaLutien.

It has also received approval from US FDA for its research about cholestrol on Gugulipid, an herbal extract. The research is at the Investigational New Drug (IND) level, which is expected to get completed by April 2004.