Lupin set to buy steroid mfg unit: Sources

09/05/06

According to sources, Lupin is set to buy a steroid manufacturing unit from a Mexico firm, reports CNBC-TV18.

The sources say that the Scehring Plough originally owned the manufacturing unit and sold this to a Mexican unit.

This deal value, say the sources, is expected to be about USD 15 to 20 million. Though Lupin has declined to comment on this development.

Mexico is a huge market and Steroid is a very good emerging business. No surprise, a lot of companies had been eyeing this plant.

Steroid manufacturing is seen as a very complicated process. So there is a fair bit of expertise, which needs to go into steroid manufacturing. It is used mostly in acute pain, in oncology drugs and also in transplant drugs. Thus, the application of steroids is also limited to a few specialised areas.

Most of the companies, particularly, Sun Pharma and now Lupin are looking at strengthening their steroids portfolios. For Lupin, as of now, there is not too much in terms of steroids' business, but going forward this is going to be a big business.