Lupin set to buy Mexico-based steroid maker
Lupin set to buy Mexico-based steroid maker, By: Mithun Roy
September 06, 2006
MUMBAI: Lupin Ltd, the Mumbai-based Rs 1,606 crore pharma company, may acquire a steroid manufacturing unit in Mexico for $20 million.
Highly placed sources confirmed that a team of Lupin had already zeroed in on the company and met its officials in Mexico. Lupin officials declined to comment.
Sources said Lupin also intends to acquire a company in eastern Europe to enter the generics market in the continent.
It is looking for brands in the US, too. The company’s recent foreign currency convertible issue is targeted at funding the inorganic growth opportunity that the company is pursuing.
Recently, Lupin divested its stake in its 60% subsidiary, Lupin Chemicals (Thailand) Ltd.
Analyst said Mexico is a huge market and steroids are a good emerging business.
Lupin is ranked ninth in terms of net sales for FY06. The company is a leading supplier of formulations in the domestic market and bulk drugs in the export market.
It has manufacturing facilities in Aurangabad, Ankleshwar, Goa, Tarapur, and R&D facility at Pune.
Experts believe that Lupin’s revenues from the domestic formulations segment are expected to grow at a 16% CAGR during the next two years from Rs 610 crore in FY06 to Rs 820 crore in FY08.
The company is fully integrated, with manufacturing capabilities in active pharmaceutical ingredients and formulations, and a direct marketing presence in all its markets.