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Plethico pays $20 mn for CIS retail buy

Plethico pays $20 mn for CIS retail buy

Mumbai: Plethico Pharmaceuticals Ltd said it agreed to buy 20% of Sputnik Regional Aptika Holdings Ltd, a drug retailer in the Commonwealth of Independent States, or CIS, from Hong Kong-based Tricon Holdings Ltd for $20 million (Rs100 crore).

The deal includes a long-term manufacturing contract.

Plethico, which already has a presence in the CIS as a supplier, started talks early this year to buy at least 51% of Sputnik.

Sputnik has 300 retail outlets in the CIS and revenues of about $120 million in 2007.

“With this deal, we also anticipate a long-term contract manufacturing business from Tricon, especially in the pharmaceutical formulations space where we have extra capacity in our Indian manufacturing plants," said Plethico chief financial officer Sanjai Pai.

Plethico expects the CIS region to be a major contributor to its revenues, as it estimates the drugs and lifestyle products market in the region to be growing at 30-32%.

Apart from Russia and Ukraine, key pharma markets,the CIS region includes countries such as Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Moldova, Tajikistan and Uzbekistan.

Plethico hopes to have revenues of Rs1,000 crore by 2010.

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