Pankaj Patel
CMD, Cadila Healthcare Ltd
Making smart moves is par for the course for Pankaj Patel, Chairman and Managing director, Cadila Healthcare Ltd. By making strategic acquisitions and alliances, Patel, a second generation entrepreneur, has propelled a Rs 250 crore company into an empire with annual revenues of more than Rs 5,200 crore — and, that too, in a period of less than two decades.
Patel, who has a master’s degree in pharmacy, has been the guiding force behind Cadila Healthcare’s (Zydus Cadila’s) fast-paced growth, making it one of the top ten companies in the pharmaceuticals space in India, with a market capitalisation exceeding Rs 18,000 crore as on August 2012. He is hailed as a dynamic and far-sighted business leader who has taken smart decisions like de-risking the group’s core pharma business through diversification into consumer products through its subsidiary, Zydus Wellness.
Brands like EverYuth, Sugarfree, Nutralite and the newly launched adult health-drink brand Actilife are household names. With a strong presence in the regulated markets of the US, Europe (France and Spain), Japan and growing markets of Latin America and South Africa, the company has also tapped 25 other emerging markets worldwide.
It all started in 1995 when the original Cadila, founded by Pankaj Patel’s father Ramanbhai Patel and Indravadan Modi in 1952, was restructured into two separate entities and Cadila Healthcare came into existence. Under the stewardship of Patel, Cadila Healthcare has made over a dozen acquisitions over the past decade.
The group’s first acquisition — in 1995 — was a 56-year-old company, Indo Pharma Pharmaceutical Works Ltd. This was followed by a slew of acquisitions by the ace dealmaker; including Recon Healthcare (2000); German Remedies (2001); Banyan Chemicals (2002); Alpharma France SAS (2003); Carnation Nutra-Analogue Foods Ltd, which makes Nutralite (2006); and Liva Healthcare (2007). Then came Nippon Universal Pharmaceuticals of Japan, Quimica e Farmaceutica Nikkho do Brasil Ltda (Nikkho), Sarabhai Zydus Animal Health Ltd in 2007 and Laboratorios Combix, Spain, Simayla Pharmaceuticals of South Africa and Etna Biotech of Italy in 2008 and 2009.
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Patel was early to spot the opportunities in a fast globalising world, and had spread wings overseas to make Zydus a formidable global player. After touching the billion dollar mark (consolidated revenues over Rs 5200 crore in 2011-12), Patel now aims to make Zydus a $3 billion (Rs 16,719 crore) company by 2015, and a global research driven company by 2020. “Our focus has always been on delivering robust, consistent growth and on exploring how we can do things differently. The next leap forward, ‘Beyond the Billion’, will be to achieve sales of $3bn by 2015,” he says.
A seasoned dealmaker, Patel has leveraged his business acumen to take his business to new heights. Zydus Cadila strengthened its presence in the domestic formulations market through its acquisition of Biochem Pharma in December 2011. The 50:50 joint venture with Germany’s Bayer Healthcare, formed in January 2011 and operating in key segments, including women’s healthcare and anti-diabetic treatments, is expected to boost Zydus’ topline significantly.
Patel’s decision to acquire US-based Nesher Pharmaceuticals in June 2011 will help the company make a fast re-entry into the US markets possible, as the USFDA has revoked the warning letter issued to the company’s Moraiya plant. Zydus will be able to market injectables and nasal products made at this facility from the Nesher stable in the US.
Once again exhibiting his golden touch, Patel acquired Germany’s Bremer Pharma in July 2011 to strengthen the group’s animal health portfolio. His strategic decision soon showed results, as the company’s animal health business posted 38 per cent revenue growth in 2011-12.
With his eyes focused firmly on the future, Pankaj Patel says, “The thrust will be on value-added products based on innovations, niche technology platforms like vaccines, biosimilars, inhalables, injectables and transdermals, and also on products which are complex to produce.”