Ranbaxy to sell Terapia's liquid business
India’s largest pharmaceutical company Ranbaxy Laboratories is selling the oral liquid manufacturing unit of its Romanian subsidiary, Terapia.
By Khomba Singh, TNN |
NEW DELHI: India���s largest pharmaceutical company Ranbaxy Laboratories is selling the oral liquid manufacturing unit of its Romanian subsidiary, Terapia. The company is learnt to have initiated talks with a few global companies to sell the unit valued at $15-20 million.
Though Ranbaxy Laboratories has not initiated talks with any Indian company, pharma experts say few domestic companies who want to market oral drugs or syrups in Romania or Europe may have a look at the asset. The sale of the unit is not likely to have any impact on the Indian company���s sales in the region.
The unit is located in Bucharest and manufactures liquids for oral drugs. Sources told ET that decision to sell the profitable manufacturing unit is a rationalisation move to expand the company���s manufacturing operations at its main facility in Kluez.
Also, liquid manufacturing is not the core focus area of Ranbaxy Laboratories. The company is expected to finalise the deal before the end of this quarter. The Gurgaon-based company had acquired Terapia in 2006 for $324 million and identified Romania as a strategic location to tap the European market. For the fiscal 2007, Romania recorded sales of over $100 million for the company.
Though Ranbaxy Laboratories has not initiated talks with any Indian company, pharma experts say few domestic companies who want to market oral drugs or syrups in Romania or Europe may have a look at the asset. The sale of the unit is not likely to have any impact on the Indian company���s sales in the region.
The unit is located in Bucharest and manufactures liquids for oral drugs. Sources told ET that decision to sell the profitable manufacturing unit is a rationalisation move to expand the company���s manufacturing operations at its main facility in Kluez.
Also, liquid manufacturing is not the core focus area of Ranbaxy Laboratories. The company is expected to finalise the deal before the end of this quarter. The Gurgaon-based company had acquired Terapia in 2006 for $324 million and identified Romania as a strategic location to tap the European market. For the fiscal 2007, Romania recorded sales of over $100 million for the company.
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When contacted, a company spokesperson declined to comment. Romania is a low-cost destination and with its entry into the EU fold, it is now a gateway for generic companies to target the European market. Ranbaxy Laboratories is also planning to scale up operations in Terapia and exports to western European markets. Post its acquisition, the company has already invested around $10 million in Romania.
Ranbaxy Laboratories has been trying to consolidate its stronghold in the country. Along with a few Indian companies, the company was in the fray to pick up 53% stake in Romania���s leading state-owned drug company Antibiotice, which was being privatised. The privatisation has been postponed indefinitely due to regulatory hurdles.
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