Lupin, Torrent in race for Polish drug major

Two firms among six bidders eyeing the Polish government's 47.5% stake in Jelfa.

Lupin and Torrent Pharmaceuticals have put in separate bids for Polish drug major Jelfa Pharmaceutical Company.

The two Indian companies are among six bidders which want to buy the Polish government's 47.5 per cent stake in Jelfa. The bidding process is expected to be completed next month.

Jelfa is one of the largest pharmaceutical firms in Poland and manufactures hormonal and cardiological drugs and multivitamin preparations.

The Polish government stake includes Poland's ministry of treasury's close to 4 per holding, the country's primary insurer PZU's around 16.7 per cent stake, and its industrial development agency's over 26 per cent stake.

Kamal Sharma, Lupin managing director, confirmed the company's bid for Jelfa.

"We have submitted our expression of interest for the bid. Lupin is open to inorganic growths via acquisitions," Sharma told Business Standard.

Latvian drug producers Grindex and Sanitas, Polfa Kutno, a Poland-based drug manufacturer, Enterprise Investors, and Advent International, an investment fund, are the other bidders.

Cardiovascular (CVS), central nervous system (CNS), dermatology, gastrointestinal, anti-arthritis/rheumatoid, hematology, and women's health are the major therapeutic categories which Jelfa specialises in. Jelfa currently exports to Russia, Hungary, Bulgaria, Lithuania, the Czech Republic, Ukraine, Russia and Vietnam.

Jelfa's turnover in 2004 was Polish Zloty (Pln) 274.1 million (Rs 364.83 crore), up from Pln 253.6 million (Rs 338.28 crore) in 2003. It had posted a net profit of Pln 9.6 million (Rs 12.80 crore) in 2004, down from Pln 21.6 million (Rs 28.81 crore) recorded in the previous year.

Lupin and Torrent Pharmaceuticals are among the top ten Indian pharma companies. Lupin specialises in anti-infectives and Torrent is a major player in the cardio-vascular segment.