Zydus Cadila acquires Liva Healthcare

Zydus Cadila, a Ahmedabad based pharma company, has acquired majority stake in Liva Healthcare.

The Zydus group has picked up 97.5% stake in Liva Healthcare. The all cash transaction will be funded through cas accruals and debt, informs Zydus release. With the acquisition of Liva Healthcare, the company expects to establish its presence in the Rs 1500 crore derma segment which is the seventh largest therapeutic segment in the Indian pharma market.

Pankaj Patel, chairman & managing director, Zydus Cadila: "Our strategy over the last few years has also been to relentlessly focus and exploit opportunities for growth in the Indian pharma market". He further said that the acquisition unlocks great value for the group as it enables us to extend our expertise in a new therapy segment and cater to the needs of this segment. "We see this as a opportunity to fortify our presence in the Indian pharma market and lead by extending our reach", adds Patel.

The market for dermatology products has grown at CAGR of 14.1 percent over the last three years. Zydus domestic formulation business contributes to over 50% of the group's turnover with as many as 17 brands amongst the top 300 pharma brands in India. In the participated segments, the group is a leader in the cardiovascular, gastrointerstinal, women's healthcare segments and has a strong presence in the respiratory, pain management and anti-infective segments.

Liva Healthcare is growing at more than 15% as per IMS (June 2006). It is a profit making company and it is likely to post sales in excess of Rs 37 crore in 2006-07.

Derma products constitute 56% of Liva's therapeutic coverage. Liva also has a strong presence in the respiratory segment which accounts for 24 percent of its TA coverage. Top five brands of the company - Fusys, Nasoclear, Oflatoon, Clobetasole combinations and BTN contribute over 63% of Liva's sales. With 325 medical representatives and a nationwide reach, Liva has strong equity with dermatologists, cosmetologists and physicians. The acquisition also includes Liva's GMP compliant manufacturing facility at Sinnar, near Nasik.

Zydus Cadila with a turnover of Rs 1800 crore. The past the group acquired Recon Healthcare, German Remedies, Banyan Chemicals and Alpharma France.