Ozone Pharma planning for IPO in the near future

NEW DELHI: Ozone Pharmaceuticals today said it will sell medicines for several chronic diseases such as diabetes and blood pressure under a uniform pricing initiative for just Rs 2 per tablet.

"We have decided to take this uniform pricing initiative to make these medicines affordable despite the fact that this will impact our margins substantially," Ozone Group Chairman and Managing Director SC Sehgal told reporters here.

The chronic segments that the company is targeting are diabetes, hypertension and cardio-vascular diseases as they are major causes of mortality in India, the company said.

Asked how would the company maintain profitability, Sehgal said it is looking at increased sales volumes due to its initiative, which would help in countering thin margins.

He said the company is looking to tap the increasing spending on health in India, where household expenditure on drugs constitutes more than 50 per cent of all out-of-pocket spending.

The group that had posted revenue of Rs 150 crore for the previous financial year is also planning an initial public offering ( IPO) in the near future.

"We are sure that we will reach revenues of Rs 200 crore in this fiscal year. As soon as we achieve this we will bring the IPO," Sehgal said.