Lupin buys 60 per cent stake in S African Co

Mumbai: Lupin has bought 60 per cent stake in South African drugmaker Pharma Dynamics (PD). The company has not disclosed the cost of acquisition.

This is Lupin’s third acquisition this year.

The company acquired German drugmaker Hormosan Pharma in July and it picked up significant stake in Generic Health, Australia in August.

PD is a major generic company and enjoys a clear leadership in the cardiovascular segment in South Africa, said a release issued by Lupin. The South African market is estimated at $2.5 billion. PD reported revenue of $16 million during the financial year ending February 2008, the release said.

The founder of PD, Mr Paul Anley, retains a significant equity holding and will continue as the Chief Executive Officer of the organisation. “With the synergies of the two companies, we expect to be in the top league in the South African market very soon,” said Dr Kamal Sharma, Managing Director, Lupin Ltd, in a statement here.

“The equity acquisition by Lupin gives us increased access to international research and development which will further strengthen our local position”, said Mr Anley, Managing Director, Pharma Dynamics.

In the current year, PD will launch at least 12 new products, which is one a month, much higher than industry average of about four new products a year, claimed the company officials.

“This is not the end. This will continue. We are looking at other markets such as Middle East, Eastern Europe and North America,” said Dr D.B. Gupta, Chairman, Lupin Ltd, about the company’s future acquisition plans.

Lupin had acquired stakes in Japanese generic drug firm Kyowa Pharmaceutical Industry Co and in Indian drugmaker Rubamin Laboratories in 2007.

“We are scouting for another opportunity in Japan. This will complement our existing product portfolio in Japan,” Mr Gupta said.

Lupin’s Rs 10 shares closed 2.5 per cent down on the NSE on Thursday at Rs 720.10.