Cadila Healthcare plans buyouts in Spain, Italy

Enters into alliance with Zambon group of Italy

The Ahmedabad-based Rs 1,170 crore Zydus Cadila Healthcare, which has signed a strategic alliance with the ¤460 million Italian major Zambon group, is looking to buy out pharmaceutical companies in Spain and Italy.

The company, which had acquired 100 per cent stake in Alpharma SAS in France last year thus strengthening its presence in Europe, will also focus on acting as an outsourcing partner for pharma majors with the global outsourcing market pegged at $25 billion.

Pankaj R Patel, chairman and managing director said, "We want to expand further in Europe and with the help of new entities for which we are looking for acquiring pharmaceutical companies in Spain and Italy. Zydus is also open to acquisition of Indian companies while we are also contemplating to act as a significant outsourcing partner for overseas pharmaceutical majors as this segment has started booming with pharma majors in developed countries looking for Indian companies which can act as their outsourcing partner."

Patel, however, refused to comment on how much the company would spend on the acquisitions, but hinted that it might happen shortly. "I can only say that these are not going to happen during this calendar year," he said.

Patel said the pact with Zambon would get Zydus a new avenue to strengthen its balance sheet while "there were more outsourcing deals on the cards."

Patel said the Company would need to expand some balancing equipment to meet the demand of the new business.

Zydus Cadila is also looking to beef up its presence in Germany. Early this year, the company acquired Alpharma SAS which was renamed Zydus France SAS and for the US market, Zydus Cadila has Zydus Pharmaceuticals USA Inc.

In France, where Zydus has already launched 43 generics, it would be introducing at least 20 new generics as the French market has been found to be "exciting for the company."

With the focus on generics formulations business, the US entity would supply finished dosage formulations to the US generics market, while for Europe, Zydus Cadila would maintain its focus on generics and formulations while.

During 2001, Zydus Cadila acquired German Remedies, while in the very next year it acquired Banyan Chemicals. Its acquisition spree started in 2000 with the buyout of the formulation business of Recon.