City-based Elder Pharmaceuticals Ltd Tuesday announced acquisition of Biomeda Group of Bulgaria, a leading pharma group, in an all-cash deal worth Euros 5 million.
The Rs.5 billion Elder has acquired 51 percent stake in Biomeda, which is among the top 10 distributors and manufacturers in Bulgaria with a turnover between 10-12 million Euros.
AdvertisementElder is planning to aggressively set a foothold in major regulated global markets with specific focus on Europe, Asia Pacific and MENA (Middle East and North Africa) and Latin America. Its acquisition of Biomeda Group in Bulgaria and London-based NeutraHealth earlier is testimony to Elder Pharmaceutical's Global Girdle Strategy, the company said. Elder is trying to tie up various geographical territories with market access and bring them together in a harmonious loop.
"Bulgaria-based Biomeda OOD is a unique acquisition for Elder. It is a manufacturer of Pharmaceutical Oral Dosage formulations. The acquisition will allow Elder to extend its product portfolio to other European markets," said Alok Saxena, director (International), Elder.
He added: "Elder got attracted to the Bulgarian market for skilled labour which has an advantage in terms of lower labour cost compared to other European countries. Being a member of European Union, patent rules are in line with EU standards. Competitive tax regime-corporate profit tax and VAT are among the lowest in central and eastern Europe with low production costs. The economy of the country is stable and is emerging as one of strongest economies out of Europe. Bulgaria by virtue of its strategic geographical location is a natural gateway to the larger markets of CIS, Asia and North Africa."
With the Biomeda acquisition, Elder's European business will grow substantially.
Elder will see the launch of many more products in Europe through this acquisition. Biomeda is Elder's second acquisition in less than 45 days. Earlier Elder got 20 percent stake in London-based NeutraHealth Plc.