Indoco Remedies has acquired 85 per cent stake in the US-based FPP Holding Company, LLC for $4 million (about ₹32 crore) from Contract Pharmacal Corp. 

The investment will help the company strengthen its position as a player in the US market, with greater control on its distribution, pricing and access to all States in the region, an Indoco executive told businessline.

FPP Holding is the holding company of Florida Pharmaceutical Products, LLC, based in Florida and engaged in the marketing and distribution of generic pharmaceutical products in the US. It brings with it licenses to all States, improving Indoco’s access, the executive said, of a market that is challenging even for large drugmakers. About six people also come into the fold of the acquiring company, along with existing contracts, the official added.

Indoco’s aim was to acquire a lean organisation with a presence in the US, the official said, adding that some functions including IT, accounting and some regulatory work would be supported from India. The US is a key market for Indoco, contributing about ₹250-plus crore to its turnover of ₹1,666 crore for FY23. With integration on the cards, the company will also review existing contracts of the acquired company and see where Indoco can leverage its India-advantage, the official said.

“This development will facilitate the exchange of knowledge and best practices, further enhancing the overall competitiveness and growth potential of both organisations. Leveraging FPP’s well-established distribution network, Indoco will have a greater reach and accessibility to a wider US customer base,” said Aditi Panandikar, MD, Indoco Remedies Ltd.

Indoco shares stood at ₹331.80 a piece, Tuesday, on the BSE.

(eom)

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