INDIA BUSINESS WORLD - JUNE 1st - JUNE 30th - 2008
MANEESH PHARMA BUYS 51% STAKE IN US FIRM SYNOVICS
MID-sized pharma firm Maneesh Pharmaceuticals has acquired 51% stake in US-based Synovics Pharmaceuticals for an undisclosed amount. It has become fourth Indian pharma firm after Sun Pharmaceuticals, Wockhardt and Glenmark, to acquire control of an American drug firm.
Although senior officials in the unlisted Maneesh declined to give financial details, the Florida-based Synovics last year’s revenue totalled $30 million (about Rs 126 crore). Confirming the development, Maneesh Pharma MD Vinay Sapte said, “Synovics is a speciality pharma firm with a focus in OTC (over-thecounter) and branded drugs. They have a strong distribution network in the US. Since, we are a generic player, the deal make sense for us as we can then offer a mix of OTC, branded and generic products in the US.”
Synovics has also a FDA-approved hormone drug manufacturing facility in the US, which would help Maneesh to operate in niche markets. The Rs 880-crore Maneesh had last year acquired Kopran’s OTC brand Symle for Rs 53 crore.
As a part of the deal, both Maneesh and Synovics have formalised a joint venture which will be used as a vehicle for Synovics to provide access to assets of Maneesh including personnel, drug development, operating and management systems and manufacturing.
Under the terms of the JV, Synovics will pay Maneesh a modest monthly fee beginning in six months and reimbursement for certain costs. Maneesh has three representatives on Synovics’ board of five directors. The deal will also help Maneesh provide value-engineered low cost manufacturing, product development and regulatory filings for generic drug approvals by the USFDA. Since, Synovics is one the leaders in the OTC drug market, it would also help Maneesh tap the US OTC market.
For generic drug companies, the United States, their primary market, is becoming intensely competitive. Many companies are offering products to large buyers. “Indian companies operating in the US cannot stay in the market only by offering just generic drugs. They have to offer a mix of products, including biogenerics,” said an analyst.
Currently, Maneesh ranks among the top 50 manufacturing companies in the Indian market, The company is expanding globally through joint ventures and subsidiaries in more than 70 countries across Africa, South America, Europe, Middle East, and in Asia. Maneesh has a strong marketing presence in its two Indian marketing arms, Svizera Healthcare and Maneesh Healthcare.
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