Matrix Labs' Belgian buy turns sour

Hyderabad-based Matrix Laboratories, a subsidiary of the US-based Mylan Inc, has announced its intention to divest Docpharma, a Belgium-based generic drug firm, which it acquired in 2005 for $263 million (over Rs 1,048 crore).

Analysts feel this decision is yet another example of big-ticket acquisitions turning sour for Indian pharma firms, as happened in the case of Dr Reddy's acquisition of Betapharm of Germany for Rs 2,250 crore.

"After careful review and upon recommendation from its senior management team, Matrix has decided to explore strategic alternatives for Docpharma including a potential sale," said Robert J Coury, Matrix's non-executive chairman.

Though Matrix announced the Docpharma buy in June 2005, which was then the largest by an Indian pharmaceutical company abroad, real integration of the businesses did not happen even after three years.

"Within a few months of Docpharma acquisition, Matrix was taken over by Mylan Laboratories and the management's focus shifted to integration of Matrix with Mylan. For Mylan, Docpharma is a small asset and its acquisition of Merck KGaA gave them a big footprint in Europe," said a Mumbai-based pharma analyst tracking Matrix Laboratories.

New CEO
Meanwhile, Mylan has appointed Jagdish Viswanath Dore, former managing director and India country head of Sandoz, generic arm of Novartis, as the new managing director and CEO of Matrix Laboratories.

He replaces Rajiv Malik, current CEO and managing director. Rajiv would relocate to the US as Mylan's executive vice-president and head of global technical operations, said Mylan.