Firm on acquisition spree
The company, however, did not disclose the financial details of its latest acquisition. Ethimed, an established generics company in Belgium, with a significant customer network, has over 20 product registrations. It is ranked number 10 among generics companies in Belgium. Earlier this week, Ranbaxy had announced its acquisition of Terapia in Romania and the unbranded generics business of GSK in Italy. Terapia, the leading independent generics company in Romania, was acquired for US$324 million, Ranbaxy’s largest overseas acquisition so far. A company statement on the latest acquisition said Ranbaxy intended to manage its operations in the Benelux territories out of Ethimed in Belgium. The acquisition follows similar strategic moves by Ranbaxy, previously in the larger European markets, and will allow Ranbaxy to anticipate local market dynamics and capitalise on the changing business landscape in the Benelux countries, it said. The latest acquisition is also funded by Ranbaxy out of its recently-raised US$440 million foreign currency convertible bond (FCCB) issue. Belgium is the seventh-largest pharmaceuticals market in Europe and along with the Netherlands (the sixth-largest market) and Luxembourg has a combined market size to the tune of US$7,6 billion, according to the MAT December 2005 figures. Commenting on the acquisition, Peter Burema, president (Europe, CIS, Africa and Latin America) of Ranbaxy, said: “Ethimed offers Ranbaxy a ready and robust distribution network to exploit new product opportunities in the future. “It also provides the company, a strong base from where we can manage and expand our operations in the Benelux countries. We see this acquisition as strategic to our business in Europe.” The acquisition puts Ranbaxy in a position to capture a significant part of this expanding market. ‘ Economic Times.