Friday, January 19, 2007

Unichem Labs to acquire Brazilian drug company

Pharma company Unichem Laboratories Limited is set to acquire a Brazilian drug company for about Rs. 110 crores. Unichem is at an advanced stage of negotiations with a firm that has a marketing network, a few product approvals, a warehouse and a quality control division.

The paper did not name the target firm but said the acquisition would be funded through internal accruals and debt. Unichem already has a presence in Brazil through a subsidiary, Unichem Farmaceutica do Brasil, but the deal would be struck by the parent and not the subsidiary.

Brazil's pharmaceuticals market, estimated at about Rs. 386 bn, is growing at 32% a year.
Unichem is also planning an acquisition in the Indian market. It is on the lookout for a formulations company that has less than 20% brands clashing with Unichem’s portfolio.

In December, Unichem bought out the remaining 40% stake in UK-based subsidiary Niche Generics Limited, making it a wholly-owned unit.

Read the articles in The Economic Times – 1 2.

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