Glenmark Pharmaceuticals subsidiary Glenmark Holdings SA to acquire Medicamenta

Glenmark Pharmaceuticals Ltd has announced that Glenmark Holdings SA (GHSA), a wholly owned Swiss Subsidiary of the Company has concluded a deal to acquire a majority shareholding (>90%) of the Company Medicamenta a.s (Medicamenta), giving the Company its first commercial foothold into the strategically important market of Europe. Under Czech Law, a holding of more than 90% shares in a Company will trigger a mandatory takeover bid for the remaining shares.

The Company was advised by Nomura International plc., the European arm of the Japan based global investment bank, on the acquisition of Medicamenta.

The Company's acquisition of Medicamenta, which has sales and marketing operations in both Czech Republic and Slovakia, is for an undisclosed consideration. This acquisition provides the Company with strategy entry point into two of the fastest growing and attractive markets in Europe.

The pharmaceutical market in the both countries is dominated by branded generics and the Company expects Medicamenta to provide a base for its branded business in Europe, and will also look to develop and expand Medicamenta's current portfolio of pharmaceutical products. Medicamenta's leading products, Ataraigin, is a household brand in Czech Republic and Slovakia - a product for the treatment of headache, cold & pain.

Medicamenta's projects revenues for the calendar year 2007 are $ 8 Mn. Medicamenta has 60 employees and brings along a basket of 29 solid dose and semi-solid products. These products are manufactured at its plant in Vysoke Myto, Czech Republic which spreads over 13,000 sq metres and is approved by the Czech Regulatory Agency (SUKL). The Company plan to make use of Medicamenta's plant capacity to support its broader operation, by providing additional manufacturing, packaging, quality release and warehousing for its European business.

Glenn Saldanha, Managing Director and CEO of the Company commented, "The purchase of Medicanments is a landmark event for Glenmark in Europe. It is another part of our long-term strategy to emerge as a speciality/brand company marketing novel drugs, by acquiring front-ends in key branded generics markets."

The Company's solid dosage formulations plant in Goa and its API plant in Ankleshwar were both recently inspected by the UK's Medicines and Healthcare products Regulatory Agency (MHRA) and the Company has said that it expects to receive final cGMP approval for both plants in the near future. These approvals will further support its activities in Europe, bolstering its hopes for regulatory product approvals and commercial relationships with other generics companies in Europe.

Source : Equity Bulls

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