Lupin, Belgian firm Dafra not to pursue MoU

 According to a release issued by Lupin to the BSE today, the company had signed an MoU in May to acquire 51% equity in the Belgian firm along with its subsidiaries including Dafra Pharma.

 "On subsequent discussions, both the parties have mutually agreed not to pursue the said MOU and to independently pursue their respective business plans and continue discussions for possible areas of co-operation in the future," the release added.

According to market sources, Lupin did not want to pursue the deal as
the management of Dafra Pharma had differences in handing over management control to the Indian company.

The Belgian pharmaceutical company is focussed on anti-malarials. Lupin was planning  to acquire majority stake in the company due its interest in the anti-malarial business.

Kamal K Sharma, managing director of Lupin, said: "Though we have decided not to proceed further with the acqusition plan, Lupin continues to be interested in anti-malarials."

With a startegic investment in Dafra Pharma, Lupin was planning to leverage its experience and credibility in supply of drugs to WHO-related programmes, and use its expertise in fixed-dose combination products and novel drug delivery platforms.

Lupin and Dafra had plans to jointly develop new therapies in the field for use by WHO and RBM. Lupin would also have been able to access the existing Dafra infrastructure and distribution network in Africa to market its range of products.