Bafna Pharma close to sealing UK buy, launch 27 new products

MUMBAI: In order to further augment its presence in the highly-regulated British market, BSE-listed Bafna Pharmaceuticals is close to acquiring a company in the UK having approvals to sell generic drugs, a source close to the development said.

The Chennai-headquartered company already has approvals from authorities to sell 11 molecules in the UK and the target company's kitty of 96 molecules will help the company immensely, the source, who did not wish to be identified, told PTI here.

Bafna, which had clocked a turnover of Rs 75 crore in FY 10, has already "sounded people" for raising debt and equity infusion through the private equity route to complete the acquisition, the source said, refusing to divulge the deal size.

"Negotiations are in the advanced stages," he said. When contacted, the company's Chairman and Managing Director, Chand Mahaveer Bafna, refused to comment on the impending deal.

The company is also targeting reducing the share of the low-margins contract manufacturing and generic drugs business in its pie and is all set to launch a brand in the lifestyle-related product segment in August.

Courtesy the foray into self-owned brands, the company is expecting the margins to double to eight per cent and the turnover to touch Rs 100 crore in FY 11.