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India's Glenmark acquires majority stake in Czech drug company

India's Glenmark Pharmaceuticals Monday announced that it had acquired a majority stake in Czech drug firm Medicamenta to get a commercial foothold in the „strategically important” European market.

Glenmark Pharmaceuticals said its wholly-owned Swiss subsidiary, Glenmark Holdings SA, had concluded a deal to acquire more than 90% in Medicamenta, but it did not disclose any financial details. „Glenmark's acquisition of Medicamenta, which has sales and marketing operations in both Czech Republic and Slovakia, is for an undisclosed consideration,” the company mentioned in the statement. „This acquisition provides Glenmark with a strategic entry point into two of the fastest-growing and attractive markets in Europe.”

Glenmark, headquartered in India's commercial capital of Mumbai employs 400 scientists and 4,000 staff. It sells its products in over 80 countries worldwide and had recorded revenues of $250 million in the last fiscal year. Medicamenta's projected revenues for 2007 are about $8 million. The Czech firm has 60 employees and manufactures 29 solid and semi-solid formulations. Growing at the rate of more than 10% every year, the Indian pharmaceutical industry is keenly eyeing Europe to set up a distribution network. Among the biggest such acquisitions last year, included Dr Reddys and Ranbaxy buying Germany's Betapharm and Romania's Terapia for $570 million and $324 million respectively. (Business News)