New Delhi: Drug major Lupin Wednesday announced acquisition of Brazil's Medquimica Industria Farmaceutica SA, marking its foray into the Latin American nation.
The company has acquired 100 percent equity stake in Medquimica Industria Farmaceutica subject to certain closing conditions, Lupin said in a statement without disclosing the financial details.
The acquisition marks the Mumbai-based company's foray into the high growth Brazilian market and would also shore up its position in the Latin American pharmaceuticals market given its acquisition of Laboratorios Grin in Mexico last fiscal, it added.
"There are a lot of synergies to the acquisition and Lupin would not only leverage its research & technology strengths to build a high quality product pipeline but also use Medquimica's commercial presence to expand business by targeting niche high-growth therapy segments," Lupin Ltd Chief Executive Officer, Vinita Gupta said.
The acquisition is also a reflection of Lupin's commitment to expand into the Latin American market and an important part of Lupin's emerging markets play going forward, she added.
Incorporated in 1975, Medquimica is a broad-based pharmaceutical company engaged in the development, manufacturing and commercialisation of branded generics and over-the-counter (OTC) products.
Medquimica is one of the fastest growing companies in the Brazilian branded generics market. It reported net revenues of around BRL 94 million ( USD 31 million) in calendar year 2014 and has over 550 employees.
"We believe that Medquimica's future and growth would be better served with the global business management and technology expertise that Lupin brings to table," Graycliff Partners (one of the private equity shareholders of Medquimica) Managing Director Cristiano Boccia said.
Brazil's pharmaceutical market has nearly doubled in size from 2009-2013, expanding at a CAGR of 17 percent, driven by growing public health expenditure and increasing household income.
In 2013, retail drug sales reached a value of BRL 58 billion (USD 25.9 bn), making Brazil the sixth largest market in the world, accounting for 3.98 percent of global sales.
Lupin shares ended at Rs 1,690.60 apiece on the BSE, down 3.35 percent from previous close.
