Pharma firms in foreign tie-ups

Region-based pharmaceutical companies are looking for strategic partners for going global. The current scenario is giving a clear indication of the regional companies storming the global market.

Venus Remedies Ltd has recently acquired a pharma unit in Germany; Ind-Swift has signed a joint venture and has acquired a 45 per cent stake in Iran's Hakim Faryand Chemical, and Chandigarh-based Surya Pharmaceutical is initial stages of making a deal with a business house in central Europe.

"By adopting the acquisition route it is easier to enter new markets and position in the export market," explained N.R.Munjal, Managing Director, Ind-Swift Laboartories Limied . In the first stage of expansion in the free-tax industrial area of Teheran overall investment will be Rs 7 crore.

A senior official of Surya Pharmaceutical Limited informed that the company has plans for acquisition of not assets but also the supply and delivery chain contract. The company is planning a $ 50 million Global Depository Receipt issue to fund its major acquisition plans. "The integrated unit will have a API, Pharmaceutical unit and packaging unit spread over 50 acre," he informed.

With a focus on the European and US market Venus Remedies Ltd has acquired a pharma unit spread over one lakh square feet in the province of Dusseldorf ,Germany through its recently established German subsidiary, Venus Pharma GmbH.

Pawan Chaudhary, Manging Director ,Venus Remedies Limited said that at this stage they will not be readyt o to disclose the german company name or the investment taken place in the deal till new managementtake over in April 1, 2006.

"We are looking to have minimum growth of 50 percent year to year and this year should do Rs 90 crore," quipped Chaudhary. The unit has a manufacturing facility of injectibles and solid dose form.

According to industry analyst the move ahs been taken in a bid to access foreign markets , tax benefits and innovative technologies and products.

"It was the 10 year tax benefit and the manufacturing and marketing of Active Pharmaceutical Ingredients (API) in Iran . Also we were keen to focus our marketing in Middle East, Europe and Russia. The indutsry in Iran doesn't have the technial backup which we are providing in term of setting an R&D and sending marketing people," said Munjal