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India’s Lupin buys SAfrican firm, eyes Japan

Posted by Yogesh on Thursday, 18 September, 2008

MUMBAI, Sept 18 (Reuters) – Indian drugmaker Lupin Ltd has bought a 60 percent holding in South African marketing firm Pharma Dynamics, its third acquisition in as many months as it expands overseas, its chairman said on Thursday.

CNBC-TV18 business channel said the deal was worth $24 million, quoting unidentified sources, but Chairman Desh Bandhu Gupta declined to comment on how much Mumbai-based Lupin paid for the purchase.

“All these acquisitions help in creating a foothold in strategic markets which are important overall and to the company,” Gupta told a news conference.

He said the company was scouting for targets in Japan, the Middle East and Europe as part of its thrust to expand abroad.

Lupin had bought stakes in German marketing firm Hormosan Pharma in July and Australia’s Generic Health in August.

Last year, it had acquired stakes in Japanese generic drug firm Kyowa Pharmaceutical Industry Co and in Indian drugmaker Rubamin Laboratories.

“Japan needs further strengthening,” Gupta said. “What Kyowa has is not enough. We also need to strengthen presence in north America.”

Pharma Dynamics, which markets drugs for cardiovascular conditions in South Africa, clocked revenue of 118 million rand ($14 million) for the year to February with EBITDA margins topping 20 percent, Managing Director Kamal Sharma said.

“We expect, in the next four years, the turnover will more than triple and the profitability will increase significantly,” said Vinod Dhawan, president of business development, referring to Pharma Dynamics. Source Reuters


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