Deal expected to add Rs 200 cr to Kemwell's turnover
Bangalore, Aug. 31
Bangalore-based pharmaceutical company Kemwell has said it has completed the acquisition of Pfizer's Swedish manufacturing plant.
The deal for the Uppsala plant was closed on August 28, concluding the agreements signed in February 2006. The unit, the first Indian pharma acquisition in Sweden, was handed over to Kemwell's management, Kemwell Pvt Ltd said in a release here.
The USFDA-approved Uppsala facility makes drug actives and finished drugs. It is expected to add Rs 200 crore to Kemwell's annual turnover, besides giving it access to technology, European quality standards and help enlarge its contract manufacturing activities.
Mr Perake Oldentoft, board member and Swedish resident, will be the Managing Director of the 170-strong Kemwell AB; the current organisational structure is to be maintained. It will continue to contract-manufacture its main product, salazopyrine, for Pfizer as well as seek new customers. Salazopyrine, used to treat arthritis and irritable bowel syndrome, has an estimated global sales of $200 million.
Without disclosing the financial details, Kemwell said the acquisition was financed through internal accruals and loans from a Swedish bank.
The Bangalore parent will now use its manpower and resources to integrate the new entity with its Indian operations. The new entity supplies to the US, Europe, Japan and nearly 80 markets.
According to the Chairman & Managing Director, Mr Subhash Bagaria, "Kemwell is determined to become a global player in contract manufacturing. Through the Swedish acquisition and the new facility in India, we can not only ensure rapid growth with a major capacity addition but also apply best practices from both parts of the world."