Zydus Cadila acquires Brazilian firm Nikkho for $25 mln

New Delhi, June 25 (UNI) Pharma major Cadila Healthcare Ltd today said it has acquired 100 per cent stake in Brazil-based Nikkho for 25 million dollars.

The acquisition will boost the company's existing generic business in Brazil by providing enhanced reach and distribution.

''We have been looking at acquisitions that can add value to operations in our key, focused markets. The Brazilian market is reasonably large and is growing rapidly. With Nikkho, we gain a company with a heritage,'' said company's Chairman and Managing Director Pankaj R Patel.

''It stands for high quality therapeutic products and has a strong equity with the doctors. This gives us an opportunity to build our presence further in a growth-driven environment.

We now see ourselves adding value to our global expansion strategy by successfully penetrating the branded generics market in Brazil.'' The company which had set up its Brazilian subsidiary in 2002 has already registered 13 products which are being marketed as generics.

Nikkho's ready manufacturing facility will benefit the company in the long term as the changing regulatory landscape in Brazil could make it mandatory for pharma companies to have a manufacturing base in the country.

Nikkho, a mid-sized company, is profit making and had posted sales of 26 million dollars for the year 2006.

The company's product basket comprises therapies across a wide range of therapeutic segments such as general medicine, pediatrics, gynecology, neurology, gastroenterology, otolarngology, respiratory, dermatology, and others.

The Brazilian pharma market is the largest of the Latin American markets estimated at eight billion dollars. The acquisition is being made through Zydus Healthcare Brasil Ltd, the step down wholly-owned subsidiary of the company.

The company's plant located at Rio De Janeiro has a total production capacity of 4.99 million ampoules/annually of both injectable and oral liquids and 96 million units/annually of solids (tablets).

It currently markets 22 products under 13 different brands. It also has nearly 50 registered brands which are yet to be launched.

UNI