Friday, December 29, 2006

Aurobindo Pharma all set to buy a company in The Netherlands

DNA Money reports that Aurobindo Pharma is all set to announce the acquisition of a formulations company in The Netherlands that will speed up the company’s European strategy. The board of directors has already approved the proposal and the deal will be announced on Friday subject to finalization of the price, say industry sources.

The transaction value is expected to be upwards of $20 mn. This will be the second European acquisition by Aurobindo Pharma after the acquisition of MilPharm in February 2006. The company being acquired has several marketing authorizations and will enable Aurobindo to expand in the market much faster apart from getting clearances for rest of Europe much faster. The acquired company had rights to 103 third-party products which were transferred to Aurobindo.

MilPharm, which had sales of 7.7 mn in 2005, was useful in front ending the company’s foray into the UK generics market where margins are much higher than in the US.

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