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Elder Pharma eyes growth through buys

Elder Pharma eyes growth through buys
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First Published: Fri, Aug 31 2007. 12 37 AM IST
Updated: Fri, Aug 31 2007. 12 37 AM IST
Drugs and personal-care products maker Elder Pharmaceuticals Ltd sees its recent buys and in-licensing deals spurring growth over the next two-three years.
Earlier this week, Elder had picked up 51% of Bulgarian drug firm Biomeda Group for €5 million (Rs28 crore).
“Our attempt is to do Rs1,000 crore by 2010, which is possible now with our acquisitions,” chairman and managing director Jagdish Saxena said in an interview.
For 2007-08, the company would touch Rs500 crore in revenue, excluding acquisitions. Biomeda is expected to add about €9-10 million in revenue to Elder’s consolidated results this year.
Last month, Elder had said it would buy a 20% stake in UK’s NeutraHealth Plc. for £5.63 million (Rs46 crore).
“We are looking at an opportunity in which we marry Indian manufacturing capability with (acquired) brands. If you see, our UK buy was about brands. Only Biomeda has a manufacturing facility,” Saxena said.
Elder’s acquisition needs were met for now, but it was still open to in-licensing deals, Saxena said, adding: “We will continue to look at niche category molecules.” In the last six months, Elder clinched in-licensing deals with a clutch of foreign firms, including Spain’s Laboratorios Farmaceuticos Rovi S.A., US’ Cymbiotics Inc. and Israel’s Enzymotec Corp., gaining exclusive India marketing rights for several drugs.
Exports, which contributed less than 3% to revenue in 2006-07, will grow the company’s share slightly to about 10% of sales at Rs100 crore by 2010, Saxena said. Elder will also explore joint venture options to make and sell formulations in African nations.
However, the US or Europe was not on the radar in a big way. “It’s for the big boys with the big money...It’s not for me,” he said. For 2006-07, Elder posted net profit of Rs5,682 lakh on revenues of Rs447 crore.
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First Published: Fri, Aug 31 2007. 12 37 AM IST