The Hindu Business Line : Alembic acquires Dabur's domestic non-oncology biz

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Ahmedabad Feb. 1 In the largest acquisition in domestic pharma sector in recent times, Alembic Ltd, the Vadodara-based pharmaceutical major, today announced the acquisition of the entire domestic non-oncology formulation business of Dabur Pharma Ltd, for Rs 159 crore.

The non-oncology formulation business of Dabur Pharma is mainly into high growth, lifestyle segments such as cardiovascular, diabetic, gastrointestinal, and gynaecology.

The acquisition is subject to necessary statutory and regulatory approvals wherever applicable. The transaction is likely to be completed in about two months, Mr Chirayu Amin, Chairman and Managing Director of Alembic Ltd, said in a release here.

The consideration for the acquisition is Rs 159 crore plus the actual net working capital on the closing date. This business had net sales of Rs 62 crore for nine-months ended December 31, 2006, and is expected to post sales of Rs 80 crore for the full year.

Mr Amin said Alembic is augmenting its presence in the international and domestic pharma space. This strategic acquisition is to enhance Alembic's domestic market share by entering prospective therapy segments. "Alembic will aggressively pursue its strategic goals through organic and inorganic initiatives in the near future."

This acquisition will be funded through a combination of internal accruals and debt. The option of dilution of small equity is also not ruled out. "We will be leveraging the company's financial position for fuelling further growth," said Mr R.K. Baheti, Director and President (Finance).

Established in 1907, the Rs 700-crore Alembic Ltd is vertically integrated and is market leader in several segments. Its manufacturing facilities are located in Vadodara and Panelav in Gujarat and Baddi in Himachal Pradesh. The Vadodara plant has the largest fermentation capacity in the country, while the Panelav facility houses both API (USFDA approved) and formulation manufacturing plants (to undertake US FDA inspection shortly). The Baddi plant manufacturers formulations for the domestic and export market.

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