Mumbai-based pharma major Lupin Ltd has acquired a majority stake in South African generic firm Pharma Dynamics (PD) for an undisclosed amount. PD, the 6th largest generic firm in South Africa, reported revenues of Rand 118 million (over Rs 66 crore) for the year ending February 2008. On Thursday, shares of Lupin closed at Rs 722.60, down by 2.36% or Rs 17.45.
PD?s founder, Paul Anley, retains a significant equity holding and will continue as the CEO of the organisation. Commenting on the development, Kamal Sharma, managing director, Lupin said, ?We are extremely excited with entry into this significant geography and are pleased that Paul Anley will continue to lead the company. With synergies of the two companies, we expect to be in the top league in the South African market very soon.?
The South African market is estimated at $2.5 billion. Generics currently constitute a third of the market and are growing rapidly.
PD will launch at least 12 new products during the current year. According to a statement, the backward integration capabilities of Lupin will assist with patent issues, regular and reliable supplies and overall process control. The dedicated global business development department will ensure continual exposure to international companies and product opportunities.
Paul Anley, MD, Pharma Dynamics said, ?The equity acquisition by Lupin gives us increased access to international research and development which will further strengthen our local position.?
PD will gain access to Lupin?s existing product pipeline and manufacturing expertise, while Lupin will gain access to the established brands and supply chains in South Africa through the deal.
?We look forward to leveraging and rapidly expanding our market share in the Southern African markets,? added Anley.