Elder Pharmaceuticals, one of the fast growing pharmaceutical formulation company, is getting ready to make its maiden overseas acquisition.
The company, which has several product-marketing alliances and a few joint ventures with overseas companies, has now zeroed in on a generic company in Europe for acquisition.
Elder, which shortlisted three to four medium scale generic companies in the Europe, was currently in the final stages of discussions with one of them located in the UK, said sources close to the development.
The deal, which would be in the range of Rs 80 to Rs 100 crore (Rs 800 million to Rs 1 billion) in value, was expected to be signed in two months, said sources. Confirming the move, an Elder Pharma executive said that the company was scouting for a suitable base in the European market but that the company could not divulge more details at the time.
Elder Pharma, which has been following a mixed business model of own products and inlicensed products focusing mainly on the domestic market, is now looking at the growing generic market abroad, especially, in Europe to leverage its manufacturing capacities in India.
The company had recently set up joint ventures in Nepal and Ghana.
The Rs 400-crore (Rs 4 billion) company has also set a target of achieving a significant growth in its export business.
Last month, it entered into an in-licensing agreement with an Australian company Rye Pharmaceuticals to develop, manufacture and market the latter's wound care products for first aid and burn applications in India.
Rye Pharma is a pioneer in self-researched wound care, first aid and skin care products, selling them in 28 countries around the world.
With the inlicensing agreement, Elder will be launching the burn therapy product - BurnAid of Rye in Indian market. BurnAid, a range of burn gels, gel dressings and burn kits, offer rapid cooling to the burn and offer fast ongoing pain relief.
Elder is also working out plans to manufacture the product and similar other products of Rye in India at its newly-set up Uttaranchal facility.
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