Mumbai-based Concept Pharmaceuticals Ltd is eyeing Brazil for an acquisition to beef up its presence in the South American veterinary drugs segment. The company is learnt to be in formal talks with the Brazilian company, which is mainly into veterinary drugs. The deal is expected to close for about $10 million.
The Rs 150-crore company is also planning to offload 25% stake for raising about Rs 125-130 crore through an initial public offer (IPO) this year. With this, it plans to expand its formulations and bulk drugs business by setting up more plants the coming year.AB Gupta, the company’s CMD, said, ?We are considering the proposal from the Brazilian company. The company has its own manufacturing facility and has a good distribution network. Though we have a better presence in the Indian veterinary drug market, the buyout will help us to expand our presence into other Latin American countries apart from Brazil.? Currently, Concept supplies veterinary drugs to Nigeria, Myanmar, Saudi Arabia and Korea. About 15-20% of its revenues come from veterinary drugs.
The company, which is targeting sales of Rs 500 crore by 2011, has plans to enter the regulated markets like the US and the UK by 2009, with generic drugs. AB Gupta, also the brother of DB Gupta, chairman, Lupin Ltd, said, ?We plan to dilute 25% stake through a public offer, though the dates for this are not yet finalised.”