Ranbaxy acquires Belgian generics firm Ethimed NV

In its third acquisition in Europe in as many days, Ranbaxy Laboratories today announced the takeover of Ethimed NV, a generics company in Belgium, for an undisclosed sum.

Ranbaxy had earlier acquired Romanian generic drug firm Terapia for $324 million and the unbranded generics business of GlaxosmithKline's Allen SpA in Italy for an undisclosed sum.

"It is a strategic market access step for Ranbaxy, especially in the Benelux countries. It will deepen and strengthen our presence there," said Malvinder Mohan Singh, managing director and chief executive officer, Ranbaxy.

Ranbaxy's shares jumped 9.93 per cent to close at Rs 451.95, up from yesterday's close of Rs 411.15, on the Bombay Stock Exchange today.

The Benelux market is worth $7.6 billion, with Belgium being the 7th largest pharmaceuticals market in Europe after the Netherlands. The Belgian market is a branded, high-priced one with increasing generic penetration.

Commenting on Ranbaxy's earlier presence in these countries, Singh said, "Earlier, it was through a distributor and now it will be through our own entity."

With three acquisitions in a row, there seems to be a clear Europe focus in Ranbaxy's strategy even as it is facing rough weather in the world's largest generics market, the US, due to pricing pressure and litigation costs.