Ranbaxy acquires GSK's generic business in Spain

The New Delhi-based Ranbaxy Laboratories has acquired Mundogen, the generic business of GlaxoSmithKline (GSK) in Spain, for an undisclosed sum.

This would be the second acquisition by Ranbaxy in the $12.5-billion Spanish pharma market.Last year, in June, it bought 18 products from Efarmes Sa.

The details pertaining to the size of the target company, its product portfolio and manufacturing sites were not made available.

Mundogen's product portfolio consists of antidepressents and antiinfectives which, stated a Ranbaxy spokesperson, complemented their portfolio.

Commenting on the acquisition, Malvinder Mohan Singh, chief executive officer & managing director, Ranbaxy Laboratories, said, "The Mundogen generic business acquisition is in line with our mergers and acquisitions strategy to focus on the EU markets where we continue to see growth opportunities. This will further consolidate our presence in the rapidly growing Spanish generic market and strengthen our product portfolio."

As per IMS, March 2006, the value of the Spanish generic market was estimated to be about $750 million and growing at the rate of 25 per cent.

The total pharmaceutical market is worth approximately $12.5 billion, stated a company release. The acquisition was done through its Spanish subsidiary, Laboratories Ranbaxy SL.

The recent acquisition by the pharma player, which is present in 21 out of 25 EU countries, has followed a slew of other European acquisitions in the last 2 years, further stressing the strong Europe focus in its corporate strategy.

In March this year, Ranbaxy had lapped up three companies "� Terapia in Romania for $ 324 million, Ethimed NV in Belgium and Allen S.p.A in Italy "� in quick succession.

Its last acquisition prior to that had been French company, RPG Aventis in January, 2004. Singh has, in the past, commented, "While US is the first engine of growth, Europe is the second."

Ranbaxy is currently marketing over 40 products in the market, including the recently launched Simvastatine and Ticlopidine and is looking to rapidly expand its product portfolio through its own pipeline as well as through the Mundogen acquisition, added the release.