Alembic Acquires Non-Oncology Business of Dabur Pharma Ltd.
Editor's Synopsis
* Alembic acquires the Domestic Non-Oncology Formulation Business of Dabur Pharma for Rs. 159 crores. * The largest acquisition in the domestic pharma sector in recent times * Business revenue of the division on annual basis is Rs. 80 crores. * Alembic enters high growth life style segment like Cardiovascular, Diabetic and Gastrointestinal, Gynaecology * Acquisition will be funded through a combination of internal accrual and debt
MUMBAI, India, Feb.1, 2007--Alembic Ltd., the pharmaceutical major, today announced the acquisition of the entire Domestic Non-Oncology Formulation Business of Dabur Pharma Ltd. The acquisition would be 'on going concern' basis. Non-Oncology Formulation Business of Dabur Pharma is mainly into high growth life style segments like Cardiovascular, Diabetic and Gastrointestinal, Gynaecology, etc.
This acquisition is subject to necessary statutory and regulatory
approvals wherever applicable. The transaction is likely to be
completed in about two months.
The consideration for the acquisition is Rs. 159 crore plus the
actual net working capital on the closing date.
This business had net sales of Rs. 62 crore for nine months ended
31st December 2006 and is expected to post sales of Rs. 80 crore
for the full year.
While announcing the acquisition Mr. Chirayu Amin, Chairman &
Managing Director, Alembic Ltd. Said, "Alembic is augmenting its
presence in the International as well as the Domestic pharma space.
This strategic acquisition is to enhance our Domestic Market share
by entering prospective therapy segments. Alembic will aggressively
pursue its strategic goals through organic and inorganic
initiatives in the near future."
"This acquisition will be funded through a combination of internal
accruals and debt. Option of dilution of small equity is also not
ruled out. We will be leveraging the company's strong financial
position for fuelling further growth" said Mr. R. K. Baheti,
Director & President - Finance.
According to Mr. Pradeep Rane, President - Formulation Business "The acquisition gives Alembic, strategic entry into the classical "Cardiovascular, Diabetological & Gynaecological segments through the acquired brands' erstwhile franchise in these therapeutic segments. Besides, the acquired product-mix also brings to Alembic's fold, leading brands in gastroenterological segment, to fortify Alembic's impressive foray in that therapeutic area in the recent years".
"Alembic plans to ramp up this business significantly by
introducing new products and aggressive growth of existing products
in a short period of one to two years".
"With this acquisition, Alembic which has created a mega-brand
franchise into anti-bacterial, cough & cold,
gastroenterological segments; will now have a marketing play also
in the lifestyle segments as well as in gynaecological, to
strategically consolidate its in-market position" added Mr. Pradeep
Rane.
About Alembic Limited
Established in 1907, the Rs. 700 crore Vadodara (Gujarat, India) based Alembic Ltd. is a leading pharmaceutical company in India. The company is vertically integrated with the ability to develop, manufacture and market pharmaceutical products, pharmaceutical substances and Intermediates. Alembic is the market leader in Macrolides segment of anti-infective drugs in India. 'Zero' (sugar free), Glycodin (cough syrup) and Althrocin (erythromycin estolate) are some of the leading brands for the company.
Alembic's manufacturing facilities are located in Vadodara and Panelav in Gujarat and Baddi in Himachal Pradesh. The plant at Vadodara has the largest fermentation capacity in India. The Panelav facility houses both API (USFDA approved) and formulation manufacturing (to undertake US FDA inspection shortly) plants. The plant at Baddi, Himachal Pradesh manufactures formulations for the domestic and export market. The company has a state of the art Research Centre- BioArc- at Vadodara, to build its strength in chemistry and capitalize for the CRAMS business.
Sonia Kulkarni
Senior Group Head - Corporate I
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