Indian pharmaceuticals firm Eurolife Healthcare Pvt. Ltd on Friday said it has acquired the European intravenous infusions plant of Israel-based Teva Pharmaceutical Industries Ltd.
The acquisition of the Hungary-based plant will help the company tap and service its European and the US markets for intravenous infusions in a better way, said Sandeep Toshniwal, chief executive of Eurolife, in a statement. The deal value was not disclosed.
Eurolife will invest 50 million euros (about Rs 387 crore at current exchange rate) in the next three years to expand the plant, he added. The plant is currently manufacturing 2.1 million bags of intravenous infusions per month.
The company, in an email to VCCircle, said that it plans to fund its expansion through internal accruals and that it is not immediately looking for a fresh round of private equity funding.
Healthcare-focused private equity firm OrbiMed had invested Rs 100 crore ($15 million) in Eurolife in 2016. In the same year, Eurolife had acquired the form-fill-seal infusion business from Baxter India, a subsidiary of US-based medical products company Baxter International.
Eurolife was founded in 2001 by Shyam Toshniwal, who is Sandeep Toshniwal's father. The company manufactures formulations, intravenous infusions, ophthalmics, sterilised water for injections, nebules, tablets, capsules, ointment and creams. In India, its plants are located across Roorkee, Uttarakhand; Waluj, Maharashtra; and Alathur, Kerala.
In 2016, Teva agreed to sell assets and operations of Actavis Generics in the UK and Ireland to India’s Intas Pharmaceuticals Ltd for $769 million to ease monopoly concerns.
In the same year, India's Aurobindo Pharma Ltd said its French unit Arrow Generiques SAS had signed a pact to acquire select commercial products in France from Teva.
Aurobindo had previously bought some of Teva’s assets in the US. In July 2016, the Federal Trade Commission of the US said Aurobindo would acquire one product from Teva in the US region within 10 days of Teva and Allergan’s merger. Teva had found 11 buyers for its basket of over 70 products for the US region. The buyers included other Indian firms Dr Reddy’s Laboratories, Zydus Cadila and Cipla.
Earlier this week, VCCircle reported that the number of mergers and acquisitions (M&As) in the healthcare and pharmaceutical sector in the April-June quarter of the current financial year has declined by almost half since the July-September quarter of 2017-18.
