Mumbai, March 26: Glenmark Pharmaceuticals will acquire Medicamenta AS (Medicamenta), a company having operations in both the Czech Republic and Slovakia, for an undisclosed sum.

Glenmark Holdings SA (GHSA), the Swiss subsidiary of Glenmark, will buy more than 90 per cent of Medicamenta. Glenmark today informed the stock exchanges that the acquisition will not only provide it a strategic entry point in two of the fastest growing markets in Europe, but will also enable it to gain a commercial foothold in the important markets of Europe.

Medicamenta has a turnover of $8 million and the acquisition has been closed under an all-cash deal.

Under Czech law, holding more than a 90 per cent stake in a company will trigger a mandatory takeover bid for the remaining shares.

Nomura International Plc, the European arm of the Japan-based global investment bank, had advised Glenmark on the acquisition of Medicamenta.

According to Glenmark, the pharmaceutical markets in both the countries are dominated by branded generics. However, the acquisition of Medicamenta is expected to provide a base for its branded business in Europe.

Glenmark also plans to develop Medicamenta’s portfolio of pharmaceutical products. Medicamenta’s leading products include Ataraigin, a household brand in the Czech Republic and Slovakia, used to treat headache, cold and pain.

Medicamenta also has a basket of 29 solid dose and semi-solid products. These products are manufactured at its plant at Vysoke Myto in Czech Republic and is approved by the Czech Regulatory Agency.

Glenmark plans to use Medicamenta’s plant capacity to support its broader operation by providing additional manufacturing, packaging, quality release and warehousing for its European business. After the news of the acquisition, the Glenmark scrip rose 4.86 per cent or Rs 28.80, to end at Rs 621.15 on the BSE today.