Glenmark Pharma Acquires Klinger Of Brazil For $5.2 M

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Mumbai, April 2: Glenmark Pharmaceuticals has acquired Laboratories Klinger in Brazil for a consideration of $5.2 million. The acquisition of 100 per cent stake in Klinger was done through the company’s wholly owned subsidiary in Brazil.

Klinger is a leading Brazilian company with expected revenues of $7 million and profits worth $1 million by December 2004. The company has reported a net profit of $7,50,000 on a topline of $5.5 million for the year ended December 2003.

The company has 21 product registrations with its own facility, approved by the Brazilian regulatory authorities, to manufacture tablets, creams, gels, lotion and oral suspensions.

Glenmark Pharma managing director & CEO Glenn Saldanha said, “We are discussing the partnership in other countries of Latin America by using Klinger as a vehicle.”

The company is hopeful of growing revenues in excess of 25 per cent on an annual compounded rate in the Brazilian market over the next three years. It has embarked upon a payback period of 2.5 years to recover its investment in Brazil, he added. Klinger is ranked in the top 40 companies by the market research firm IMS.

Brazil, with sales of $7 billion, is the largest pharmaceutical market in South America and the 11th largest in the world, with market growth rate of 8-10 per cent annually. Mexico comes a close second in market size.

Glenmark Pharma will export products, including active pharma ingredients (APIs), to the Brazilian subsidiary. It would also introduce its products in the Brazilian market through Klinger. Glenmark Pharma has reported a 62 per cent increase in its exports for the nine month period ended December 31, 2003.