Italian firm to pick up 10% in Elder Pharma

Elder Pharmaceuticals Ltd today announced that Aziende Chimiche Riunite Francesco Angelini SpA (ACRAF), an Italian pharmaceutical firm with sales of euro 1.7 billion, has decided to pick up a 10 per cent stake in the company.

The Italian firm will subscribe to 15.99 lakh fresh equity shares of Elder, representing a 10 per cent stake in the expanded equity caital of the company, for Rs 160 per share.

Alok Saxena, director international division, Elder Pharmaceuticals, said: "ACRAF's commitment to Elder will not be restricted to the investment. We will be jointly marketing products. Also, we will work together to grow contract research."

Elder Pharmaceuticals has informed the stock exchanges that the commune would place a special resolution pertaining to allotment of 15.99 lakh equity shares to the foreign company before the shareholders shortly.

The company would also seek the approval of the shareholders for allotment of a 10 per cent of the issued share capital of the company to the employees under a scheme titled Elder ESOP 2004.

Elder also informed the exchange that Indart Exports has acquired 10,0000 shares from the open market from August 17 to August 18, 2004. The shareholding of Indart Exports after this acquisition is 7,08,160 shares (4.92 per cent).

ACRAF, which is understood to be the largest wholesaler of medicines in Italy, specialises in analgesics, pain management and cebroneuropsychatery drugs.

It is a privately held company headquartered at Rome. Some of its top products include bupivacaina, mapivacaina, atropine solphato and merbromina.