Booster dose

New Delhi, March 29: Ranbaxy Laboratories has acquired 96.7 per cent of Romania’s largest independent generic drug company ? Terapia ? from Advent International for $324 million.

“The deal will combine the strengths of the two premier generic companies and allow Ranbaxy to leverage its expanded base in the rapidly growing Romanian pharmaceutical market and across the European Union and CIS markets,” Ranbaxy said.

“Terapia represents exceptional value for our stakeholders. Within the Ranbaxy fold, it unleashes multiple synergies of product development, product flow, low-cost manufacturing, proximity and access to high-growth markets. The transaction is compelling and will help us to become one of the top five global generic companies,” said Malvinder Mohan Singh, CEO & managing director of Ranbaxy.

Ranbaxy gains access to Terapia’s product basket of 157 marketing authorisations with a strong focus on the fast growing segments of musculoskeletal therapeutic segments.

These now comprise 71 per cent of the company’s domestic sales. Enalapril, Aspenter (Acetylsalicylic acid), Diurex 50 are some of Terapia’s successful products in the domestic market.

Joanna James, managing director (central Europe) of Advent International said: “We have been strategic investors in Terapia and it has been our endeavour to add value to the entity at every point in the value chain. With consolidation imminent in the pharmaceutical industry, scale and global presence will be critical. We believe Ranbaxy is best equipped to take the company forward into its next phase of growth.”

Romania is the fastest growing pharmaceutical market in the Central & Eastern European (CEE) region with an annual growth of 34 per cent over the last three years.

Ranbaxy Laboratories was advised by ABN Amro Corporate Finance Ltd. Advent International was advised by Merrill Lynch International.

Terapia also has a presence outside Romania with 30 per cent of its product portfolio being registered in over 15 countries, including the high growth generic markets of Russia, Ukraine and Poland. “This provides a synergistic opportunity for Ranbaxy to leverage itself further in those markets,” said the statement.

As a result of the acquisition, Ranbaxy will also be able to utilise the low-cost manufacturing capacities of Terapia comprising two units producing tablets, capsules, sterile ampoules and liquids.

“The product portfolio of the two companies is highly complementary,” said Peter Burema, president of Ranbaxy, Europe, CIS, Africa & Latin America.