Lupin to acquire 51% of Artifex

Lupin has signed a memorandum of understanding to acquire 51 per cent equity in Belgium-based Artifex Finance CVA along with its subsidiaries that includes Dafra Pharma.

Dafra is a dedicated anti-malarial drug company that provides a complete basket of Artemisinin-based combination therapies that include a pediatric suspension.

The company also holds a patent on a new combination therapy that cures Malaria in 24 hours. Dafra's marketing network spans across 25 countries in Africa and the company works closely with the national Malaria boards in various countries.

The Indian company, is currently a leader in anti-TB medicines and is pre-qualified by WHO for supplies to Global Drug Facility and other multilateral organisations.

Lupin plans to leverage its experience and credibility in supply of drugs to WHO-related programs and use its expertise in fixed-dose combination products and novel drug delivery platforms.

The purchase price would be decided after due diligence is done, a Lupin spokesman said.

Following the deal, Lupin and Dafra plan to jointly develop new therapies in this field for use by WHO, marking Lupin's foray into the anti-malaria drug market.

Also, Lupin will be able to access the existing Dafra infrastructure and distribution network in Africa to market its range of products.

Desh Bandhu Gupta, chairman, Lupin, said: "This acquisition is a great strategic initiative and will leverage the company's TB franchise with the WHO. Lupin's R&D will be able to add considerable value and move pipeline projects faster to the market."

While, F H Jansen, president, Dafra Pharma, said that Dafra has long been engaged in the development and marketing of the new generation of anti-malarial drugs.

"The strong R&D capacities of Lupin together with Dafra's experience in ACTs and in Africa will lead to great synergies on the R&D, manufacturing and continued global marketing of ACTs of high efficacy, quality and safety and thus contribute to a massive leap forward in the fight against malaria," he added.

Mumbai-based Lupin is currently one of the leading pharmaceutical company in the country with strong research focus that includes development of new chemical entities (NCEs).

The company is an active player in anti-TB, cephalosporins (anti-infectives) and cardiovascular drugs and also has presence in the areas of diabetology, NSAIDS and Asthma.

For the financial year ended March 2006, Lupin's revenues and profit after tax were Rs.1,661 crore ($ 375 million) and Rs 182.7 crore ($41 million) respectively.

In February Lupin formed a joint venture with South Africa's Aspen Pharmacare to develop and market anti-TB drugs and investigate opportunities to enter the malaria market.

Lupin share prices fell by 4.12 per cent on Bombay Stock Exchange today at Rs 1,041.60 from the previousely traded prices of Rs 1,086.35.