SIRO buys German clinical research firm

Mumbai: SIRO Clinpharm (SIRO), one of India’s leading clinical research organisations (CRO), has signed an agreement to acquire Germany-based Omega Mediation Group, a leading mid-sized European CRO, for an undisclosed amount in an all-cash deal.

The acquisition will provide SIRO with operational capabilities in Germany, Greece, Estonia, the Baltic states and Israel, besides access to Omega’s major European pharmaceutical and biotech clients.

Omega will continue to function independently and the promoters and the current management will continue, said Chetan Tamhankar, chief operating officer of SIRO Clinpharm.

“The combined entities of SIRO and Omega will have a turnover of over Rs 200 crore,” said Tamhankar.

The Indian firm was also looking at acquisitions or greenfield projects in the emerging CRO markets of southeast Asian such as Malaysia, the Philippines and Thailand, he added.

The global clinical trial industry is estimated at about $15 billion (Rs 60,000 crore) and the domestic CRO industry is estimated to have a turnover of $300-350 million (Rs 1,200-1,400 crore) with over 100 players,150 clinical projects. The CRO industry in India is projected to grow to $2 billion (Rs 8,000 crore) by 2010.

In early July 2007, SIRO had acquired Global Client Partners (GCP), a US-based CRO with client network among the US biotech and pharma companies.

Set up in 1992, Omega employs over 100 professionals and have offices in Offenbach in Germany, Athens, Talinn, Estonia and Tel Aviv.

Established in 1996, SIRO is one of the first CRO’s in India and employs over 400 professionals with offices in Mumbai and Princeton, New Jersey. The company has so far done over 150 clinical projects of various pharmaceutical companies.

The family of Gautam Daftary (chairman of SIRO Clinpharm), Kotak Private Equity and 3i Capital are the major promoters of SIRO Clinpharm.