Ranbaxy buys Glaxo Italy arm

Acquires unbranded generics business of Allen SpA.

Ranbaxy Laboratories announced the acquisition of the unbranded generics business of Allen SpA, a division of GlaxoSmithKline (GSK) in Italy, for an undisclosed sum.

With Allen SpA, Ranbaxy has acquired a workforce of more than 3,000, a research and development centre for drug discovery, two state-of-the-art certified manufacturing plants and a sales force of medical representatives spread across the country.

The acquisition, through Ranbaxy Italia SpA, a subsidiary, will come into effect on April 1, this year.

The $420 million Italian generics market is one of the fastest growing markets in Europe, with an annual growth rate of 49 per cent. The total pharmaceutical market in Italy is worth about $14 billion, according to IMS figures.

"This acquisition of the Allen Generic business from GSK will fast-track Ranbaxy's growth plans in Italy. This product portfolio complements our own pipeline of products for the Italian market," said Malvinder Mohan Singh, chief executive officer and managing director of Ranbaxy.

It would also enable the Indian generics major to utilise opportunities arising from future patent expires, he added.

Ranbaxy Italia SpA, incorporated in September 2005, is engaged in filing Ranbaxy's portfolio of generic products with the Italian health authorities and plans to launch its first product, Sertralina Ranbaxy, in May this year.