Continuing with its buying spree, Ahmedabad-based pharma major Zydus Cadila on Friday, announced the acquisition of Liva Healthcare of Mumbai, a mid-sized pharma company having Derma focused product portfolio. The group acquired 97.5% stake in the privately-held company-Liva Healthcare and this strategic acquisition by Zydus Cadila would place the company in Rs 1,500 crore Drema Segment, which is the 7th largest in the therapeutic segment in Indian pharma market.
All cash transcation will be funded through cash accruals and debt. The chairman and managing director, Zydus Cadila, Pankaj R Patel said, “As our strategy over the last few years has also been to relentlessly focus and exploit opportunities for growth in Indian pharma market.
This 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. We see this as an opportunity to fortify our presence in the Indian market and lead.”
The acquisition jumpstarts the group’s operations in this hitherto unexplored segment. Zydus’ domestic formulation business contributes to over 50% of the group’s turnover with, 17 brands amongst the top 300-pharma brands in India.
Liva Healthcare was rated as a rising star amongst the upcoming Indian pharma companies, growing more than 15% as per IMS (June 2006).
Source : Financial Express