The takeover deal – financial terms of which were not disclosed – saw Indchem merge with the Netherlands-headquartered chemical firm’s local division, IMCD India, and former owner Narayan Sainathan appointed as head of that organization’s pharmaceutical business unit.
IMCD spokeswoman Marina Kaptein told in-Pharmatechnologist.com that: “For India, we were keen to establish ourselves in this sector too and hence the acquisition of Indchem,” explaining that “Indchem is a key player in the excipient market and ranks in Top 5 in the distribution industry.”
Indchem is focused on the supply of excipients to the pharmaceutical industry in India, including those used in solid dosage forms, liquids, topicals and parenterals. It also provides compounds used in modified-release delivery technologies, patches and dry powder inhalers.
The firm markets and locally distributes excipients made by a number of non-Indian suppliers like Amitec Corp and SPI Pharma from the US and Germany’s DFE Pharma and positions itself as “as an extended arm” of such companies.
This approach fits with IMCD’s business according to Kaptein, who said: “Our key strengths are in having technical background and working with customers to bring innovative products to their needs whilst providing first class service and supply chain solutions to the market.”
The takeover comes just a few months after IMCD bought the pharmaceutical ingredients business of Malaysian ingredient and excipient distributor Maxwell Pharma. It also follows a little over a year after the Netherlands firm bought Italian fine chemicals supplier Organotec.
These deals, coupled with the acquisition of South Africa’s chemicals and formulation supplier Ethnichem in summer 2011 and the Indchem takeover, underline IMCD’s desire to establish a bigger presence in the pharmaceutical industry according to business director Ashvin Patel.
“With Indchem’s excellent customer service and technical support on board, IMCD will be able to further strengthen our presences on the Indian market.”