New Delhi, October 27, 2017: Drugmaker Elder Pharmaceuticals Managing Director and Chief Executive Officer Alok Saxena has passed away plunging the debt-ridden drugmaker into greater uncertainity.
Alok (52) was the elder son of Elder founder late Jagdish Saxena who passed away in October 2013. But over the last three odd years, the company has been mired in multiple controversies from a family feud to defaulted fixed deposit payments to investors and depositors, delayed wages to workers, allegations of bribery against company top-brass and wind-up petitions in the Courts against the company.
Alok’s younger brother and Elder Pharma’s Chief Operating Officer Anuj Saxena is also an actor, having played lead roles in Hindi television serials. He also heads Elder Health Care. In fact, Elder Pharma’s annual report 2013, last available on the Bombay Stock Exchange, records the shelving of plans to merge Elder Health Care with Elder Pharma.
Brand sale to Torrent
Not too long ago, Elder Pharma was a thriving company on the Indian pharmaceutical landscape with popular brands like Shelcal and Tiger Balm (which it imported and sold in India) in its kitty. But in December 2013, Elder inked a ₹2,004-crore deal to sell its branded drugs business in India and Nepal to Torrent Pharmaceuticals. The deal was expected to bail out Elder Pharma then saddled with a ₹1,300-crore debt.
Crossing over as part of the deal was Shelcal, then estimated to be a ₹170-crore brand, besides 30 others in segments including women’s healthcare, pain management, wound-care and nutraceuticals. Elder’s management then said that they were left with 25 in-licensing deals and its exports business.
Elder tried to salvage its reputation by planning for life beyond the Torrent acquisition of its brands. The company had businesses in the United Kingdom, Ghana and Bulgaria, from acquisitions in these countries.
But in October 2015, Elder Pharma said it would repay its creditors and investors by raising funds through a combination of debt, equity and asset sale. And that included the sale of its stake in its subsidiaries in the UK and Bulgaria.
Elder Pharma has long been plagued with speculation of being up for sale, factories, assets and all. It’s published total income stands at Rs 25 crore, upto March 2015 with a net loss of 51 crore.
With the passing of Elder scion Alok Saxena, the future of the remaining employees with the troubled drugmaker plunges further into uncertainty, said a company insider.
Corporate Comm India(CCI Newswire)
