The Hindu Business Line : Glenmark acquires Brazilian firm for Rs 22 crore

GLENMARK Pharmaceuticals Ltd has acquired the Brazil-based Laboratorios Klinger for $ 5.2 million (about Rs 22.7 crore). The acquisition was made through Glenmark's wholly-owned subsidiary Glenmark Farmaceutica Ltda (GFL).

The last couple of years have seen Indian pharma companies such as Ranbaxy, Wockhardt, Dr Reddy's and Zydus Cadila acquiring firms abroad and the forthcoming year will only see more of them, observe analysts.

Glenmark's acquisition will be funded through a mix of debt and internal accruals, Mr Glenn Saldanha, Managing Director and CEO of GPL, told newspersons here. Based in Sao Paulo, Brazil's commercial capital, GFL was set up late last year.

Klinger has 176 employees and 91 sales representatives, besides a manufacturing facility. With a presence in branded genercis and over-the-counter (OTC) drugs, Klinger has 21 approved product registrations in Brazil.

Mr Saldanha said the workforce would be integrated though there could be some rationalisation of products. He said that products would be developed in India and exported to the regulated market. Industry watchers point out that the Brazil market, the 11th largest globally, is an estimated $ 7 billion market.

Klinger expects to close the calendar year 2004 with a sales of $7 million and a profit of about $1 million.

According to company officials, the acquisition would help grow the combined revenues of both the companies in excess of 25 per cent, on an annual compounded rate, in the Brazilian market over the next three years.

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