Glenmark buys 90% stake in Czech firm

Glenmark buys 90% stake in Czech firm
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First Published: Tue, Mar 27 2007. 12 46 AM IST
Updated: Tue, Mar 27 2007. 12 46 AM IST
Mumbai: Dermatologicals specialist Glenmark Pharmaceuticals Ltd has bought 90% stake in Czech drug-distribution and retail company Medicamenta a.s for Rs55-60 crore. Since Czech law requires an open offer by the acquirer for the remaining 10% shares, Glenmark is expected to make an offer for the balance shareholding.
Reacting to the deal, the price of Glenmark shares on BSE rose 4.86% to Rs621.15.
“The purchase of Medicamenta is a landmark event for Glenmark in Europe. It is another part of our long-term strategy to emerge as a speciality/brand company marketing novel drugs by acquiring front-ends in key branded generics markets,” said Glenn Saldanha, managing director and CEO, Glenmark. “The pharmaceutical market in Czech and Slovakia are dominated by branded generics. Glenmark expects that the Czech firm will offer a base for its branded business in Europe, and will look to develop and expand Medicamenta’s current portfolio.”
GLENMARK’S OVERSEAS SHOPPING
Year Target Country Price
2004 Laboratories Klinger Brazil $5.2 million
2005 Servycal S A Argentina Undisclosed
2005 Bouyer Barlett South Africa Undisclosed
2007 Medicamenta a s Czheck Republic S14 million
The Czech acquisition will help the Rs446.12 crore-worth Glenmark to strengthen its presence in two fast-growing markets—Czech Republic and Slovakia in Europe. Medicamenta’s projected sales for the calendar year 2007 are $8 million, with an expected profit of 20%. The Czech firm, which has 60 employees in its manufacturing and distribution operations, has 29 drug products, including one of Czech Republic’s most popular pain and cold brands Atralgin, in its portfolio.
Medicamenta is the fourth overseas acquisition of Glenmark Pharma.
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First Published: Tue, Mar 27 2007. 12 46 AM IST
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