Ranbaxy buys Terapia for $324 million
India's leading drug-maker Ranbaxy on March 29, 2006 said it has acquired Terapia, the largest independent generic company in Romania, for $324 million and aims to make that country its manufacturing hub in Europe.
The deal, which saw Ranbaxy acquiring 96.7 per cent stake in Terapia, will give the Gurgaon-based company two manufacturing units, bioequivalence centres, 60 products and access to Terapia's coverage of nearly 4,000 pharmacies and 450 hospitals in Romania.
"The deal will combine the strengths of the two premier generic companies and will allow Ranbaxy to leverage its expanded base in the rapidly growing Romanian pharmaceutical market, across the European Union and the CIS markets," CEO and managing director, Ranbaxy Laboratories Limited Malvinder Mohan Singh said.
He said Ranbaxy will be moving its European manufacturing to the two facilities of Terapia, which has the capacity to make oral and liquid formulations and steril injections.
"In future we intend to make Terapia's facilites our hub for manufacturing in Europe," Singh said, adding though the facilities are not yet USFDA approved, it will be filing an application in the near future.
He said the acquisition would help the company unleash new opportunities in Romania and pan European synergies and it will provide Terapia with additional products to launch in the domestic market at very cost competitive levels, thereby lowering costs and delivering value to both consumers and the domestic healthcare budget.
Ranbaxy's acquisition of Terapia comes at a time when the company needs to give a boost to its European presence in view of shrinking margins in the US market due to price erosion.