INDIA BUSINESS WORLD - APRIL 2007
The Month that was ...

GLENMARK BUYS CZECH FIRM

Glenmark pharmaceuticals on Monday announced acquisition of 90% stake in Czech firm Medicamenta to get a commercial foothold in the strategically important market of Europe for around $10 million.

In a statement issued here, Glenmark said its wholly-owned Swiss subsidiary, Glenmark Holdings SA (GHSA) has signed a deal to acquire over 90% in Medicamenta. Glenmark was advised by Nomura International Plc, the European arm of the Japanese global investment bank, on the acquisition.

On Monday Glenmark shares rose to 4.86% to close to Rs 621.15 at the Bombay Stock Exchange (BSE).

The acquisition will provide a base for branded business in Europe to Glenmark, which would also look for expanding Medicamenta's current portfolio of pharmaceutical products. Medicamenta, which has sales and marketing operations in Czech Republic and Slovakia, the two of the fastest-growing pharma markets in Europe. Its leading product, Ataralgin an anti-cold product, is a household brand in Czech Republic and Slovakia

"The purchase of Medicamenta is a landmark event for Glenmark in Europe. It is another part of our long-term strategy to emerge as a specialty company marketing novel drugs, by acquiring front-ends in key branded generics markets,"Glenmark managing director and CEO Glen Saldanha said.

As per the Czech law, a holding of over 90% shares in a company would trigger a mandatory takeover bid for the remaining shares. The acquisition would give Glenmark a strategic entry into two of the fastest pharmaceutical markets in Europe, where Medicamenta has sales and marketing operations.

The solid dosage formulations plant of Glenmark in Goa and its active pharmaceuticals ingredient plant in Ankleshwar were recently approved by UK's medicines and healthcare products regulatory agency. These approvals would further support its activities in Europe, bolstering its hopes for regulatory product approvals and commercial.

Paul Wohanka, chairman of the supervisory board for Medicamenta, noted that "Glenmark is a perfect strategic partner for Medicamenta."