India's Torrent buys into German generics market
pharmaceutical company. In the latest case, Torrent Pharmaceuticals
has agreed to acquire Heumann Pharma Generics of Germany through
its wholly owned German affiliate, Torrent Pharma GmbH.
Heumann Pharma Generics, a subsidiary of world number one pharmaceutical firm Pfizer, had turnover of some €50m in the fiscal year ended 30 November, 2004, and is ranked eleventh in the German generics market. It had previously been rumoured that Merck KGaA was interested in buying the firm.
Last week, Matrix Laboratories announced plans to buy a 22 per cent controlling stake in Belgium's Docpharma for €217m in what is thought to be the largest overseas acquisition yet for the Indian pharmaceutical sector. Just a few days before Malladi snapped up US active pharmaceutical ingredient supplier Novus Fine Chemicals for €19m, while last month UK-based contract researcher Synprotec was acquired by India's Dishman Pharmaceuticals and Chemicals.
Torrent's finance director - Sanjay Dalal - said the purchase was the group's first move to establish a presence in what is Europe's most-mature generics market. Financial terms of the deal are not disclosed although rumours circulating in the industry put the price tag at no more than €9m.
Torrent's 2004 revenues came in at 5.66 billion rupees (€108m), but the Indian company has predicted that the addition of Heumann will push sales above the 10 billion-rupee mark.
The acquisition excludes manufacturing facilities in Nuernberg, which will be retained by Feucht-based Heumann PCS, a wholly-owned subsidiary of Pfizer.
Heumann Pharma Generics will source its products partly from Heumann PCS' manufacturing facility and also from third-party manufacturers.
As part of the agreement, Heumann Pharma Generics will continue to procure part of its requirements of formulations from Heumann PCS for a specified period. Support services will also be provided by Pfizer entities in Germany until April 2006 to facilitate a smooth transition. The deal is subject to regulatory approvals and is expected to complete by 5 August.
In a statement, Heumann said the acquisition will give access to the 90-year old Heumann brand name, 315 marketing authorisations and 34 product registration applications, together giving Torrent a strong presence in Germany.
Germany's generic pharmaceutical market is valued at around €8bn, making it the largest in the European Union. The market is currently undergoing a phase of consolidation, with Novartis buying Hexal and Teva rumoured to be considering the purchase of Stada. Betapharm is also tipped to be an acquisition target.
