Zydus buys Nikkho of Brazil for $25 m

AHMEDABAD: In its second overseas acquisition this year, Ahmedabad-based Rs 1,800-crore Zydus Cadila has picked up 100% stake in Quimica e Farmaceutica Nikkho do Brasil Ltda (Nikkho), a mid-sized, privately held company in Brazil for $ 25 million.

The profit-making company had posted sales of US$ 26 mn for the calendar year 2006. This strategic acquisition brings in an added advantage of making a foray in the ‘branded generics’ business in Brazil for Zydus, which already has a presence in the pure generics market. The $ 8 bn Brazilian pharma market is the largest of the Latin American markets.

The acquisition is being made through Zydus Healthcare Brasil Limitada, the step-down wholly-owned subsidiary of Cadila Healthcare Ltd. An agreement signed today will come into effect after the satisfaction of closing conditions.

Headquartered in Rio de Janeiro, Nikkho is a growing and profitable pharmaceutical company with a manufacturing facility. In existence for over four decades, the company caters exclusively to the Brazilian prescription drugs market. Nikkho has a sales force of 125 people and enjoys rapport with 60,000 medical practitioners.

The company’s product basket comprises therapies across a wide range of therapeutic segments such as general medicine, pediatrics, gynaecology, neurology, gastroenterology, otolaryngology, respiratory, dermatology, and others.

The Rio De Janeiro plant has a production capacity of 4.99 million ampoules/annually of both injectable and oral liquids and 96 million units/annually of tablets. The company currently markets 22 products under 13 different brands.