Hikal open to buying out Marsing

Hikal, which acquired a majority 50.1 per cent stake in the Denmark-based Marsing & Co last week, has the option to buy out the company.

Jai Hiremath, vice chairman and managing director, Hikal, said: "We have the option to buy out the remaining stake from the existing stake holders over a period of a few years. We are currently testing the waters, and if all goes well, we would be keen to exercise this option."

Marsing is a pharmaceutical marketing and distribution company with a distribution network in 100 countries. It has 1,200 customers across Europe, Latin America, Africa and the Middle-east.

The acquisition has enabled Hikal with an access in European markets such as Germany, France and Italy, which are now opening up to generic drugs.

Marsing also has a manufacturing base in Germany, which will now be taken over by Hikal. The acquisition is likely to increase Hikal's combined turnover to around Rs 500 crore in the coming year.

It would also increase the share of the pharmaceuticals business in the company's turnover to around 70 per cent. Hikal is scouting in the Japanese and the US markets for similar tie-ups and acquisitions.

Hikal today announced receipt of approval from the United States Food and Drug Administration, Department of Health & Human Services (US-FDA), for its active pharmaceutical ingredient (API) manufacturing facility at Jigani, Bangalore.

"The US-FDA approval, along with the recent acquisition of European pharma distribution company (Marsing), will help Hikal implement its plans to export APIs to USA & other regulated markets," Hiremath said.