Mumbai: Drug maker Strides Arcolab Ltd. will pay Rs 1 billion to acquire Grandix Pharmaceuticals Ltd. and its laboratory unit to garner a share in a fast-growing domestic market.
Strides had in April announced the acquisition of Grandix but had not disclosed the deal value.
Grandix is a branded drugs maker mainly catering to southern India. For 2006/07, it posted sales of Rs 485 million and core earnings of Rs 108.9 million.
According to a company statement, sales were expected to grow by 30% in 2007-08. “We are confident that the acquisition will create a differentiated local operation in the Indian domestic pharma space,” Vice Chairman and Managing Director Arun Kumar stated, adding that the acquisition will be earnings accretive with immediate effect.
Last month, Strides said it would acquire the fermentation unit of Italy’s Diaspa Spa for an undisclosed amount.
Strides shares were trading 2.6% higher at Rs 338 rupees in a firm Mumbai market on the morning of 11 June.