Elder Pharmaceuticals Limited has hiked stake in its Bulgarian subsidiary Elder Biomeda AD to 61% from the present 51% for an undisclosed sum. The balance 39% stake in Elder Biomeda AD is held by the original owners of Biomeda group.
In April 2008, Elder had formed a subsidiary in Bulgaria called Elder Biomeda AD, which acquired 100% equity in three leading Bulgarian healthcare companies belonging to the Biomeda group. The original owners of Biomeda Group companies were in exchange given 49% shares of
Elder Biomeda AD at that time.
This is a move by the company to capitalise on the low infrastructure and production costs existing in EU & CIS markets. It has an aggressive expansion plan to reach a turnover of Rs 1,000 crore by 2012.
“This shall be our strategic gateway to the EU & CIS Markets. Bulgaria offers low infrastructure cost (compared to other EU countries), lower production and labor cost and low construction cost as compared to other EU countries. Additionally, the WHO GMP approved and USFDA
compliant seven manufacturing units of Elder in India will offer its nutraceuticals product range internationally acquired companies”, Alok Saxena, Director International, Elder Pharmaceuticals, said in a statement.
Of the three companies one has a manufacturing unit for formulations, another is a distribution company for pharmaceutical and allied products and the third is a logistics company with strategically located warehouses.
Biomeda group is among the top 10 distributors & manufacturers of oral dosage pharmaceutical formulations in Bulgaria. Elder is planning to quickly spread in major regulated markets with specific focus on EU & CIS countries. The Bulgarian entities will launch many products in the
next 8-10 months in that region.
Europe remains an attractive market to launch pharmaceutical products in, because centralized regulatory ruling allows for immediate access to all member states. Also, EU expansion to 27 countries offers greater market opportunities. By 2012, Elder is targeting a pan-European presence, covering all the key markets of Europe which will be the stepping stone towards spreading its footprints across the world – both in regulated as well as unregulated markets.