India's Strides buys into European markets
to announce acquisitions aimed at boosting its presence in overseas
markets.
The Indian company plans to boost its presence in the European generics sector with the purchase of a sterile manufacturing facility in Poland and a majority stake in Italian contract pharmaceutical manufacturer Beltapharm SpA, which specialises in the production of generic drugs.
Strides' announcement comes after string of other acquisitions involving Indian companies. In June, Torrent Pharmaceuticals agreed to buy German generics house Heumann Pharma for an undisclosed sum, while Matrix Laboratories unveiled plans to buy a 22 per cent controlling stake in Belgium's Docpharma for €217m - thought to be the largest overseas acquisition yet for the Indian pharmaceutical sector. Earlier, Malladi snapped up US active pharmaceutical ingredient supplier Novus Fine Chemicals for €19m, while in May UK-based contract researcher Synprotec was acquired by India's Dishman Pharmaceuticals and Chemicals.
Discussing the significance of its purchases, Strides' group's chief executive, Arun Kumar, said that the acquisition "represents a unique opportunity for the company to establish a manufacturing presence in Central Europe," as well as expand the firm's portfolio of finished forms.
The Polish facility specialises in the manufacture of small-volume parenterals and sterile and non-sterile semi-solids products. "The Polish facility will give easier access to Europe at a low operating cost," he added. The company will pay around $8 million (€6.5m) for the unit.
Meanwhile, Strides decision to acquire a stake of up to 70 per cent in Milan-based Beltapharm, for around $1.9 million, brings it control of a facility that recently received a European Union Good Manufacturing Practice (GMP) approval.
The Italian acquisition will help Strides to meet its manufacturing commitments arising out of the development and manufacturing contracts concluded in the recent past in the semi-solids space, according to Kumar.
Strides also operates production facilities in India, Brazil, Mexico and the US. The company reported first-half 2005 revenues of 1.31 billion rupees (€24m), up 30 per cent year-on-year, with net income rising by a third to 138 million rupees.
