Scouting for global acquisitions of brands, companies: Lupin

The firm is adopting a three-pronged approach in its acquisition strategy

Drug major Lupin is looking to acquire companies and brands globally, including in the US, Japan and China, to expand its global footprint.

 

The Mumbai-based firm is adopting a three-pronged approach in its acquisition strategy, which also includes the domestic market. While it will scout for brands to acquire, in some geographies, it will look to take over companies which can provide it new technology or market access.

 

"Acquisitions, would be a part of our overall business approach. We are on the lookout for companies and products to acquire. Our acquisition strategy is going to be three-fold," Lupin Group President and CEO Designate Vinita Gupta told PTI.

 

Gupta, who is also the CEO of Lupin Pharmaceuticals Inc, however did not share the amount that the company is ready to spend on such planned acquisitions.

 

Elaborating the inorganic growth strategy, she said Lupin would like to go for products and companies that can complement its existing businesses in major markets like the US and Japan.

 

"In the US in particular, we are looking at brands that we can buy that can add to our portfolio. Likewise, in Japan we are looking at companies that can add to our market presence in the country," Gupta said.

 

For 2012-13 fiscal, the company's US revenues increased by 36% to $693 million. Lupin's Japanese business grew by 52% clocking net to Rs 1,304 crore during FY 2012-13 and contributed 14% to the company's consolidated revenues.

 

Besides, Lupin is also looking to acquire firms that can expand its capabilities from a technology standpoint, she added.

 

"While we are working on building internal capabilities in some of these areas, simultaneously we are also looking at technology companies that we can buy that can get us into these areas sooner," Gupta said.

 

She said the other part of the acquisition strategy for Lupin, which is the 8th largest global generic company by market capitalisation, is to expand its geographic presence.

 

"We have very good geographic spread right now of 60% in regulated markets and 40% in emerging markets. But we have aspirations to go into other markets where we think we can add and build value in and we are very actively looking at acquisitions in these countries - some markets in Europe; LATAM, India and China," Gupta said.

 

Vinita Gupta will take over as the Lupin Chief Executive Officer with effect from September 1, 2013.