The Ahmedabad-based pharmaceuticals major Cadila Healthcare Ltd (Zydus Cadila), on Friday announced its foray into Spain with the acquisition of 100 stake in Laboratorios Combix for an undisclosed financial consideration.

“We are still in the process of finalising the valuation,” a Zydus spokesperson told Business Line. Combix, which has a pure generics focus, provides the right fit for Zydus’ entry strategy into a market that is estimated at $1.7 billion and is growing at 21.5 per cent. The Spanish pharmaceutical market is the fifth largest in Europe, Zydus said in a statement here on Friday. Established in 2006, Combix, with a sales and marketing focus, has a portfolio covering 17 molecules.

Additionally, it has a range of products that are pending launch or are in the pipeline. The acquisition allows Zydus to jump start its business and leverage strengths in product development, a high quality and cost-competitive supply chain and operational efficiency, Mr Pankaj R. Patel, Chairman and Managing Director, said.

Having entered the French generics market in 2003, an entry into Spain forms a critical part of Zydus’ European expansion strategy which looks at markets with low generic penetration which provide ample opportunities for growth. The Spanish generic market is forecast to grow rapidly during the coming years, he added.

Instead of adopting a green-field strategy to enter newer markets, Zydus has been expanding its operations globally through strategic acquisitions. Starting with Alpharma France in 2003, the group went on to acquire Nippon Universal Pharmaceuticals Ltd of Japan and Quimica e Farmaceutica Nikkho do Brasil Ltda of Brazil in 2007.

With operations in the US, Europe, Japan, Latin America, Asia Pacific and Africa, the group’s formulation exports grew by 72 per cent in 2007-08.With a turnover of more than Rs 2,300 crore, the Group has 9,000 employees globally, and a world-class research and development centre dedicated to discovery research and nine state-of-the-art manufacturing plants.

Cadila’s shares of Rs 5 face value closed on the NSE today at Rs 297 against yesterday’s close of Rs 293.30.

Source: moneycontrol