Thursday 16 February 2012

Singapore's Invida to buy Shalaks Pharma for $25 mn


Singapore-based pharmaceuticals company Invida has agreed to acquire New Delhi's Shalaks Pharmaceuticals for $25 million (Rs 125 crore) or three times its revenue. Shalaks promoter and Chairman VK Nangia neither confirmed nor denied that a deal had been concluded.
Shalaks makes and markets prescription and over-the-counter skincare products like sunscreen lotions, skin rash creams, soaps and cosmetics. It had revenues of Rs 40 crore in fiscal 2011.

In 2010, the Indian dermatology market grew 21% and had an estimated value of $513 million (Rs 2,565 crore), or 25% of the Asia-Pacific dermatology market, according to estimates on Invida's website.

The $200-million Invida, which started out providing contract sales forces to multinational drug companies, like Pfizer, in key Asian markets in 2005, has also been building its own specialty product portfolio through in-licensing and acquisitions. In 2008, it bought the Asia-Pacific operations of California-based Valeant Pharmaceuticals. In 2010, it acquired 70% in Indonesian drugs manufacturer MUGI.

However, partnering continues to be an important pillar of its strategy, especially since MNCs are keen on ramping up their presence in fast growing emerging markets.

In March, UK drug firm Sinclair Pharmaceuticals, which specialises in dermatology and wound-care products, added India to a list of 11 markets in which Invida has the exclusive rights to market Sinclair brands. Invida has 1,000 sales representatives in India, according to a report on its website.

Invida is co-owned by US-based clinical research organisation Quintiles, Temasek Holdings, and Zuellig group, which has a large distribution and supply chain management network in the Asia-Pacific.

Since 2008, the pace of M&A’s in the drug industry has increased as Indian promoters - facing tightened domestic patent laws and challenging business and regulatory environment - are wooed by bulge-bracket MNCs ready to pay hefty premium to scale up their presence in the Indian market.

For instance, last year Piramal Healthcare sold its local prescription drugs unit to Abbott for Rs 17,000 crore or nine times the sales figure. But a combination of the global economic uncertainty and hefty domestic valuations has seen bigticket deals drying up in recent months.

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