The Hindu Business Line : Glenmark in Poland: Branded generic boost

Glenmark Pharmaceuticals’ acquisition of seven brands in Poland — the largest market in Central and Eastern Europe — will give it a good front-ended presence and double up as a platform for future launches.

The stock rose nearly 4 per cent on the BSE. Glenmark Pharma, which now houses only the branded generics and innovative drug businesses after spinning off the non-branded generic and bulk drugs business to subsidiary Glenmark Generics has been targeting the Central Eastern European (CEE) countries for some time now.

Glenmark’s subsidiary Medicamenta (through which the acquisition of brands has been sealed) will receive all marketing authorisations and trademark rights in Poland for the acquired portfolio and will sell them directly through its appointed distributors.

Big market

Glenmark has not disclosed the acquisition amount but it expects the acquired brand portfolio to clock sales of $15 million in FY09; that accounts for less than 2 per cent of its estimated consolidated revenues in 2008-09.

While the numbers may not seem big now, branded generics account for more than 85-90 per cent of the market of the $8 billion-a-year Polish market.

Branded generic market has a 50 per cent penetration, which leaves room for players such as Glenmark to expand further in major therapeutic areas catering to nervous and respiratory systems.

Poland has one of the biggest populations in Europe and generics have good potential, as they are given priority over patented drugs and are usually placed on the reimbursement list, making them a popular prescription choice.

‘Brandobast’

The agreement to buy the seven brands does not entail any manufacturing agreements but it is expected that Glenmark will either utilise capacities from its Czech plant or dole out contracts to local makers. The acquisition may contribute from July onwards as existing (Actavis) and new (Glenmark’s) sales teams go through a transition period.

The portfolio has products such as anti-depressant Cital and anti-epileptic Lamotrix (both accounting for half of portfolio’s present value). Androvit, Sterko, Moklar, Nicerin and Xetonar form the rest.

While Glenmark has been traditionally strong in products catering to skin and metabolic disorders, over the long-term, the Polish business is expected to transition from mere front-end to selling, as well as co-promoting Glenmark’s proprietary medications that would reach the market in the next 3-5 years.

More Stories on : Pharmaceuticals | Overseas Investments | Pharmaceuticals

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