Glenmark to buy generic firm in Europe
Research-oriented Glenmark Pharmceuticals is close to acquiring a branded generics company in Central Europe.
The company, which is currently in the advanced stages of discussions with the latter, is likely to close the deal early next year.
Sources close to the development said the deal size would be in the range of $35-$50 million (about Rs 200 crore). The European entity was a leading player in the branded generic markets in Eastern and Central Europe with over $20 million sales in March 2005, sources said.
Glenmark sources confirmed the move saying talks were on for a strategic acquisition. If finalised, the deal will be the third overseas acquisition by Glenmark since 2005. In October 2005, the company had acquired Servycal SA in Argentina.
Following this, Glenmark also closed another deal in South Africa to acquire Bouwer-Bartlett, a leading sales and marketing company, in December 2005.
Glenmark, which established its European subsidiary Glenmark Pharmaceuticals (Europe) in 2004, is now planning a strong foray into the market through a niche branded strategy.
For this, it is also planning development of niche generic products, and partnering and creating alliances with European companies.
The company had in June this year entered into a joint developing, filing and marketing deal for eight dermatology products with Merck Generics, Germany, for Europe.
The first of these products has already been filed, and the target has been set to launch it next year. The remaining products are expected to be launched by 2010.
Expanding inorganically in select branded generics markets in Europe, the company had been scouting for acquisitions.
Focused on drug discovery and development, Glenmark recently signed a deal with Merck KGaA of Darmstadt, Germany, for its prospective diabetes drug GRC 8200, giving it exclusive development, registration and commercialisation rights for the North American, European and Japanese territories.
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