Ahmedabad-based pharma company Zydus Cadila has acquired a 97.5% stake in Liva Healthcare in an all-cash deal. The acquisition will be funded through cash accruals and debt.
Zydus expects the acquisition of Liva Healthcare will help the former to establish its presence in the Rs. 1500 crores derma segment, seventh largest therapeutic segment in the Indian pharma market. The market for dermatology products has grown at a CAGR of 14.1% over the last three years.
Zydus’ domestic formulations business contributes to over 50% of the group's turnover with as many as 17 brands amongst the top 300 pharma brands in India. In the participated segments, the group is a leader in the cardiovascular, gastro-intestinal, women's healthcare segments and has a strong presence in the respiratory, pain management and anti-infective segments.
Liva Healthcare is growing at more than 15%. It is a profit making company and it is likely to post sales in excess of Rs. 37 crores in 2006-07. Zydus Cadila has a turnover of Rs. 1800 crores. In the past, the group acquired Recon Healthcare, German Remedies, Banyan Chemicals and Alpharma France.
Read the article in Business Standard.
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