Cadila Pharma looks for acquisition in Europe, US

Ahmedabad-based pharmaceutical major, Cadila Pharmaceuticals Ltd (CPL), is on an acquisition drive in the regulated markets overseas to expand its presence worldwide.

Talking to Business Standard, I A Modi, Chairman of CPL, said, "We are eyeing acquisition in overseas market that would strengthen our brand and extend reach to the overseas market".

Cadila Pharma has its presence in America, CIS countries, Africa, Central and South-East Asia, Oceanic Countries, Japan, Middle East and Europe. Though the company already markets its products into the highly regulated market, the acquisition would give CPL a direct entry in this market as a top most serious generic pharma player.

Cadila's strategy is to acquire a company with strong intellectual property right (IPR) product line that can match its present generic pharma business in India.

The company would also like to capitalise on the branded product line of the targetted company for better penetration in the market.

"We are targetting pharma companies having good turnover and it must be ongoing company that will give us leverage in the regulated markets", informs Modi. However, he mentioned that the targetted company would neither be too small nor too large either in terms of volume or turnover.

"We are scouting for companies having turnover of atleast $300 million", said Modi, declining to divulge further the details of the targetted companies.

Its other initiatives include thrust on biotechnology research. The company has set up its biotechnology research and development (R&D) centre as well.

The company has put around 20 products in the market including conventional and recombinant vaccines, anti-cancer bio-therapeutics, diagnostics using recombinant antigens and natural thrombolites with high market potential.

Cadila Pharma is also investing heavily into its ambitious special economic zone (SEZ) project.

The company is initially investing Rs 500 crore for Cadila SEZ that would come up at Haripura near Ahmedabad. The SEZ will be spread across 100 hectares land. The company has also picked up 50 per cent stake in Apollo Hospitals in Ahmedabad.

While targetting the unregulated generic drug market in Africa, Cadila Pharma has invested Rs 50 crore to set up manufacturing plant in Ethiopia, which will commence production soon.