The Hindu Business Line : Marksans eyes acquisitions in US

Mumbai, Aug. 28 With three overseas acquisitions in three years across in Australia and the UK, drug-maker Marksans Pharma Ltd seems to have an appetite for more. The Mumbai-based drug company is scouting for a generic pharmaceutical company in the US, said Mr Mark Saldanha, Managing Director.

Marksans is talking to a couple of companies in the US, he told Business Line, without giving a timeline. The lookout is for a manufacturing and marketing company that would fit into Marksans’ generic-business model, he indicated.

UK acquisitions

Marksans has acquired UK-based generic pharma company, Relonchem Ltd. It forked out about Rs 100 crore for the acquisition, he confirmed. The funds for the acquisition were being raised through internal accruals and debt, he said.

Relonchem is Marksans’ second acquisition in the UK, the first being the deal to buy Hale group and its subsidiary in January. The Hale Group is strong in the over-the-counter segment, while Relonchem is strong in the high-end prescription segment, and through the two acquisitions Marksans will have its presence through the entire chain, Mr Saldanha explained.

Relonchem has been sourcing its medicines from other markets, and the Rs 330-crore Marksans will look to integrate operations and source medicines now from its India base, he said. The sales and marketing company has no manufacturing facility, has about 25 people and a strong intellectual property portfolio, he added.

Relonchem’s sales of $32 million, will tip the balance in favour of international markets that will now contribute over 60 per cent of Marksans’ total revenues, he said.

In 2006, Marksans had picked up 60 per cent equity in Nova Pharmaceuticals Australasia PTY Ltd. With a presence in Australia, the UK and with an eye on the US, Marksans has a presence in three of the largest pharma markets, he said, in line with the company’s global vision. Marksans shares were up close to five per cent, at Rs 20.35 on the BSE.