Glenmark Pharma eyes European mkt for generic acquisition
Glenmark Pharmaceuticals is all set to foray into European generic market with an acquisition in Eastern Europe. “We are looking at a front-end branded generic business in Eastern Europe,” said Glenn Saldanha, managing director & CEO, Glenmark Pharmaceuticals. “We are expecting to complete the acquisition before the year end,” he added.
Mr Saldanha did not comment on the size of the acquisition. But reports, elsewhere, said that as a strategy the company would look at a cash-generating, privately held front-end business, with sales ranging from e8 million to e12 million.
The acquisition would help Glenmark Pharma to file and launch its branded generics products through its sales and marketing company, and may also provide dossiers to partners for non-core markets, according to the same report.
Glenmark Pharma should also soon see revenues start flowing from Europe as it launches its first product with Germany’s pharma major Merck. The domestic company entered into an agreement with Merck in July to develop and market eight generic dermatological products in Europe, which have a current annual sales value of around $225 million in the region, at innovators prices.
Glenmark will develop, manufacture and supply the products, while both the companies would be responsible for their sales and marketing. So far, only one of these products has been filed, and is expected to reach market in 2007. The remaining products should be launched by 2010.
This is not Glenmark Pharma’s first overseas acquisition. Last year, it had also acquired a South African sales and marketing company — Bouwer Bartlett — through its wholly-owned Swiss subsidiary for an undisclosed sum. With a basket of 29 products, Glenmark expects the South African operations to close at $3.1 million with an operating margin of $6,00,000 in 2006.
In 2004, Glenmark Pharma had also bought out a Brazilian company — Laboratorios Klinger, which had around $7 million sales — for $5.2 million to tap the $7-billion Brazilian pharmaceutical market. Klinger’s main business is generated from branded generics and OTC products.
Glenmark expects to achieve an overall revenue of around Rs 1,121 crore in the year ended March 2007, with Indian formulations accounting for 40% of revenues, and US and Latin America representing 17% and 14%, respectively, of the company’s overall business.
Source:
