INDIA BUSINESS WORLD - AUGUST (16^th - 31^st) 2007
The Month that was ...

ELDER PHARMACEUTICAL ACQUIRES 51% IN BULGARIAN FIRM

ELDER Pharmaceutical has said that it has acquired 51% stake in Bulgaria-based Biomeda group for about $5 million or Rs 28 crore. Biomeda group is one of the top 10 distributors and manufacturers of pharmaceutical products in Bulgaria. The acquisition is part of Elder's move to have a foothold in major regulated global markets with specific focus on Europe, Asia Pacific and Latin America. The 51% stake purchase and its the recent acquisition in the London based NeutraHealth is testimony to Elder's global plans, a company statement issued said.

"Biomeda is a unique acquisition for Elder. It is a manufacturer of pharmaceutical oral dosage formulations. The acquisition will allow Elder to extend its product portfolio to other European markets," said Elder Pharma's director Mr. Alok Saxena. He also added it will provide the right entry vehicle to enter Bulgaria, leveraging Elder's EU product portfolio and impressive product pipeline. "With the acquisition, Elder will enjoy a pan-European presence, covering all the key markets of Europe." Mr. Saxena added. Bulgaria's skilled labour has an advantage in terms of low-labour cost compared to other European countries. Being a member of the European Union, patent rules are in line with EU standards. Competitive tax regime-corporate profit tax and VAT are among the lowest in Central and Eastern Europe with low production costs. "The economy of the country is stable and it is emerging as one of strongest economies out of Europe. Bulgaria by virtue of its strategic geographical location is a natural gateway to larger markets of CIS, Asia and North Africa," Mr. Saxena said.

"We are excited about our prospects with Elder Pharmaceutical. They have world-class capabilities, a global presence and significant industry knowledge. Our customers will also benefit from the skills, processes and capabilities that Elder will bring," said Biomeda CEO Koleva.