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Mumbai: Lupin Ltd, India’s third largest pharmaceutical company by sales, on Wednesday said it has acquired Brazilian drug maker Medquímica Indústria Farmacêutica S.A.

The value of the deal was not disclosed.

In 2013, retail drug sales in Brazil reached 58 billion Brazilian reals ($25.9 billion), making it the sixth largest pharma product market in the world, accounting for 3.98% of global sales, Lupin said on Wednesday.

Incorporated in 1975, Medquímica is engaged in the development, manufacture and commercialization of branded generics, pure generics and over-the-counter products.

Medquímica recorded net revenue of approximately 94 million Brazilian reals in 2014 and has over 550 employees.

“There are a lot of synergies to the acquisition and Lupin would not only leverage its research and technology strengths to build a high-quality product pipeline but also use Medquímica’s commercial presence to expand business by targeting niche high-growth therapy segments. The acquisition is also a reflection of Lupin’s commitment to expand into the Latin American market and an important part of Lupin’s emerging markets play going forward," said Vinita Gupta, chief executive officer, Lupin.

Lupin said fourth quarter profit fell 1.1% to 547.01 crore from 553 crore a year ago. A Bloomberg survey of 22 analysts had arrived at a median profit estimate of 600 crore.

Revenue rose 0.1% from a year ago to 3,054.04 crore from 3,051.55 crore.

Earnings before interest, taxes, depreciation and amortization (Ebitda) for the quarter stood at 806.5 crore, against 882.1 crore in the same quarter last year.

“Higher price erosion in the US as well as a slowdown in product approvals impacted growth in the quarter, but overall, the company has done well to improve gross margins and enhance profitability for the year," said Nilesh Gupta, managing director, in the company’s earnings statement.

Lupin fell 3.35% to close at 1690.60 on BSE on Wednesday, while the exchange’s benchmark Sensex rose 1.39% to close at 27,251.10 points.

Ravindra Sonavane contributed to this story.

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