The Hindu Business Line : Natco acquires pharmacy in US

Hyderabad-based Natco Pharma Ltd strengthened its retail operations in the US by acquiring SaveMart Pharmacy, a multi-utility drug store in Lancaster, Pennsylvania, for an undisclosed sum.

SaveMart Pharmacy clocked $18 million sales during last year and would sell pharmaceutical products, vitamins and health and beauty aids. “The acquisition is in line with our retail business strategy. Seen together with the earlier acquisition of Nicks’ Drugs in Newark, New Jersey, the net accretion of retail revenues from the US would be at $28 million (about 30 per cent of Natco’s revenues) in about one year,” Mr Adi Narayana, Company Secretary, Natco Pharma, told Business Line.

The company has plans to acquire more such stores in the near future to give a push to its revenues and provide an opportunity “to have a feel of the Western markets.”

In addition, the stores would be perfect outlets for the company’s generic products as well. “Over a period of time, we hope to generate over $100 million revenue from retailing in the US,” he added.

The acquisition was routed through Natco Phrama Inc, a Delaware registered Corporation, a wholly owned subsidiary of Natco Pharma Ltd, Hyderabad.

The acquisition was funded mainly through internal accruals and partly through debt, according to a release.