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Aurobindo Pharma Ltd will be acquiring Portugal’s Generic Farmaceutica SA in a ₹969 crore (€135 million) deal.
The Hyderabad-based company, on Saturday, announced that a definitive agreement was signed by its step-down subsidiary, Agile Pharma, Netherlands.
The acquisition will be from from Magnum Capital Partners for an all-cash deal, it said.
It will include a manufacturing facility in Amadora, Portugal, which has the capacity to produce 1.2 billion tablets or capsules annually.
After the acquisition, the Aurobindo group will be the largest in the generic pharmaceutical market in Portugal with a portfolio of 271 generic products.
It also consolidates Aurobindo’s footprint in Portugal which now has Aurovitas, Unipessoal LDA and Aurobindo Pharma-Portugal.
Generis has a wide portfolio of products, with a major share in therapeutic areas such as cardiovascular, central nervous system, anti-infective, and the genitourinary system.
Focus on EuropeAurobindo expects to complete the deal by next month, after the Portuguese Competition authorities clear the deal.
The present deal of Aurobindo’s comes within months after its unsuccessful bid for Teva Pharmaceuticals’ assets in the UK and Ireland.
Expansion in Europe, has been a focus area for Aurobindo as it is now the second largest generic market it after the US in terms of revenues.
This is a second major European acquisition by Aurobindo after Actavis in 2014.
Europe is now the largest contributor to global pharmaceutical revenues after the US.
It has been steadily expanding its European footprint since 2006, via acquisitions across several key markets, most notably in 2014 with the acquisition of Actavis’s commercial operations in seven west European countries.
Revenue seen upThe management estimates that the net sales for the acquired business will be approximately €72 million (₹517 crore) in 2017, as compared to €64.8 million in the previous year.
Commenting on the acquisition, V Muralidharan, Senior Vice-President of European Operations, said:
“The combined entity will benefit from a robust pipeline covering all major molecules coming off-patent in the next five years,” he added.
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