Lupin acquires Brazilian pharma company Medquímica Indústria

Mumbai-based pharma major Lupin Ltd has acquired Brazil-based pharma company Medquímica Indústria Farmacêutica S.A., Brazil, (Medquímica) for an undisclosed amount, the company said. The deal is subject to certain closing conditions.

The acquisition marks Lupin’s foray into the Brazilian market and it would also strengthen its position in the Latin American pharmaceuticals market as Medquimica acquired Laboratorios Grin in Mexico last fiscal.

Medquimica was incorporated in 1975 and is engaged in the development and manufacturing of generics and OTC products. For the calendar year ended December 31, 2014, the Brazilian firm, which has 550 employees, had revenues of around BRL 94 million ($31 million).

"Lupin would 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," said Vinita Gupta, CEO, Lupin.

In 2013, Brazil's pharmaceutical market reached $25.9 billion in retail drug sales, making it the sixth-largest market in the world with 3.98 per cent of global sales (based on ex-factory prices, including taxes).

“We believe that Medquímica’s growth would be better served with the global business management and technology expertise that Lupin brings to the table. It offers enhanced capabilities to roll out high quality pharmaceutical products which would benefit customers in the Brazilian market," said Cristiano Boccia, managing director of Graycliff Partners, Brazil, one of the shareholders of Medquímica.

Recently, Lupin completed the acquisition of South African generic drugmaker Pharma Dynamics by acquiring remaining 40 per cent equity stake from its founders.

Early last year, Lupin acquired Laboratorios Grin S.A. De C.V, which marked the company's foray into the high-growth Mexican and the larger Latin American pharmaceuticals market.

Lupin's shares were trading at Rs 1,627 each, down 3.76 per cent on BSE in a weak Mumbai market on Thursday at 11.50 AM.

Lupin, the third-largest Indian pharmaceutical company by sales, recorded a consolidated turnover of Rs 12,599.7 crore ($1.96 billion) and a net profit of Rs 2,403.2 crore ($375.3 million) for the financial year ended March 31, 2015.

In the pharma space, last month, Eris Pharma Australia Pty Ltd acquired Aurobindo Pharma (Australia) Pty Ltd from Aurobindo Pharma Ltd; Cipla struck a deal to acquire Brazil-based Duomed Produtos Farmaceuticos Ltd; and Ahmedabad-based drugmaker Torrent Pharmaceuticals Ltd signed an agreement to acquire Zyg Pharma Pvt Ltd, according to VCCedge, the data research platform of VCCircle.

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