The Hindu Business Line : Elder Pharma to pick up 20% in UK’s Neutra

Mumbai, July 28 Elder Pharmaceuticals Ltd has marked its entry into the UK, and the regulated markets, through its offer to pick up 20 per cent stake in Neutra Health Plc, for a consideration of £5.63 million, an estimated Rs 47 crore.

The process to pick up equity in this AIM (Alternative Investment Market)-listed-company has been initiated and the legal proceedings should be completed in less than a month, Mr Alok Saxena, Elder Pharma’s Director-International, told Business Line.

More Acquisition

The deal involves the purchase of 35,197,026 equity shares having a face value of 10 pence at 16 pence per share. The Mumbai-based drug company would fund the acquisition through its recently approved FCCB of $50 million and is looking at more acquisition opportunities in markets such as Europe and Africa, he said.

On the Neutra deal, Mr Saxena said that it was a marketing company with no manufacturing facility. The opportunity would be for Elder to support the manufacturing from India, he said.

Popular products like TravelGuard, the range of travel-related health products would be marketed in India, he said, even as Elder’s popular products like Shelcal would be taken into the UK market.

Stringent Laws

Neutra has three subsidiaries which market and distribute neutraceutical products such as vitamins, specialised health supplements, over the counter medicines and ‘detox in a box’ health treatments, an Elder note said. Neutra Health has a turnover of £23 million and Elder sees synergies being generated from this transaction.

The UK market has stringent laws on neutraceuticals in terms of labelling etc, but Mr Saxena said the regulatory distinction between food and drugs was clear in India too.

While a large part of the neutraceutical products were under the food category, some of them were categorised as drugs as well. In the food category, neutraceuticals are not allowed to make therapeutic claims of curing an ailment.

More Stories on : Mergers & Acquisitions | Petroleum

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Gayatri Projects to raise $30 m

India Info Edge net rises

Elder Pharma to pick up 20% in UK’s Neutra

Bhatinda refinery: SBI team lending Rs 7,793 cr

Malaysia’s Awana launches Hyderabad centre

Phillips Carbon venture with Vinachem may be formalised in September

Renault, Bajaj Auto discuss joint venture plan

New Holland to ramp up capacity to 25,000 units