Business
Ranbaxy buys Romanian pharma major http://www.ndtvprofit.com/homepage/storybusinessnew.asp?template=&whichstory=n&id=30501
Namrata Brar
Wednesday, March 29, 2006 (New Delhi):
Ranbaxy has bought out Romania's biggest pharma player Terapia for $324 million or Rs 1450 crore.
The deal will give Ranbaxy access to two manufacturing units in Romania and 157 drugs that treat heart and nerve disorders.
Terapia also has 60 new products that it was set to introduce over the next two-three years.
The deal will help Ranbaxy strengthen its position in the European market, especially since Romania is knocking on the door to enter the European Union next year.
Over-payment?
But the question that analysts are asking is whether Ranbaxy has paid a bit too much for the acquisition.
Terapia's annual sales stand at about $80 million, which means Ranbaxy has paid about four times that amount.
Compare that to Dr Reddy's, which paid three times the sales figure to take over the German company Betapharm.
But Ranbaxy says the two are not comparable because Terapia offers much faster growth opportunity.
This is Ranbaxy's second acquisition this week and the pharma major says it is looking to buy out more such companies across the globe.