American generic pharmaceutical manufacturer SOHM Inc has acquired Pune-based Novatrend Medicament Pvt Ltd, for an undisclosed amount, the company said in a statement.
Under this deal, Novatrend brings in 17 existing products and 40 new products that are in the pipeline under SOHM’s stable. Besides the range of products, Novatrend is also bringing its sales network in seven states with 120 established distributors and stockists with revenue expectations of an additional $1.5 million to SOHM, Inc during the fiscal year 2012, which will allow the company to achieve its revenue and profitability goals for 2012 and beyond, the company said.
“We believe this acquisition an important strategic move for SOHM, expanding our presence in the rapidly growing pharmaceutical market. This acquisition will bring in a range of Dermatology and Cosmeceutical products to the product portfolio of SOHM,” Shailesh Shah, president and CEO of SOHM, Inc commented on the acquisition.
Incorporated in 2005, SOHM Inc produces and markets generic pharmaceutical products for various treatment categories. The company has licenses to manufacture 30 products and approximately 300 generic drugs and product formulations for distribution. The company markets its products in the Far East, Africa, European Union, Southeast Asia, and Latin America.
Although there have been no large M&A deal of the size of billion dollar plus has been struck in the pharma industry in the past one year, there have been a string of small and mid-size transactions both inbound and outbound.
Early this month, Mumbai-based Lupin Ltd acquired up to 100 per cent stake in Tokyo’s I’rom Pharmaceutical Co. Ltd (IP), an integrated Japanese healthcare provider, for an undisclosed sum.
Also, Aventis Pharma completed the acquisition of Universal Medicare Pvt Ltd’s marketing and distribution business of branded nutraceutical formulations in India for Rs 567 crore ($114 million).
The pharmaceutical industry on the whole, has clocked 21 M&A deals with an announced value of $ 425 million since January 1 this year, as per data collated by VCCedge, the financial research platform of VCCircle.
This was much lower than deals worth over $6 billion spread over 59 transactions announced in the pharma sector in the same period last year, but this number was inflated due to few big ticket deals including Abbott’s acquisition of Piramal Healthcare’s domestic formulations business.