Matrix acquires 43% stake in Explora Labs

The Hyderabad-based Matrix Laboratories has announced that it has acquired a 43 per cent stake in Explora Laboratories SA, a research and development-focused company based in Mendrisio, Switzerland.

Explora is a closely-held company and expects to record revenues of 2 million Swiss francs for calendar 2005. Matrix, which ended 2004-05 with net sales of Rs 641.31 crore and profit after tax of Rs 131 crore, has acquired the stake in Explora in an all-cash deal.

Explora Laboratories is into R&D of active pharmaceutical ingredients (APIs) and intermediates through chemical, biochemical and fermentation processes. Its expertise in bio-catalysis is useful in development of high-potency APIs such as anti-cancer molecules. It is also into development of specialised and modified release dosage forms.

Managed by a team of scientists, Explora also possesses know-how in the chemistry of nucleic acids (DNA and RNA derivatives) that are mainly used in the development of anti-viral and anti-cancer drugs.

Explora has filed two patents to cover its inventions in enzymes immobilisation. The company is pursuing third-party research work for a group of generic and branded pharmaceutical companies, including Matrix.

Access to Explora's scientific team would accelerate the entry of Matrix into high potential growth and niche areas such as corticosteroid and anti-cancer segments.

Explora's technology platforms would also provide a unique opportunity to Matrix in the area of contract research and manufacturing for the multinational branded pharmaceutical companies.

According to a press release, Rajiv Malik, chief executive officer of Matrix, said, "The technology platforms, experienced management, pipeline of products and the business contracts that are in place make Explora a unique company. Our investment in Explora makes business sense as this company can add synergy to Matrix in the area of anti-cancer and steroids "" the two therapeutic segments in which we are not present at the moment." The acquisition of stake in Explora is the second inorganic growth deal for Matrix in this financial year.

Earlier, Matrix had announced that it has signed a share purchase agreement with the promoters of Docpharma NV, the Van Rampoy family, to buy 13,70,085 shares at 34 euro a piece, representing a 22 per cent stake.