Zydus Cadila acquires Japanese co in generics space

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Zydus Cadila acquires Japanese co in generics space

Zydus Cadila has acquired a company in the generics space which has 10 products. They have also acquired a Japanese company for USD 3 million in a cash deal. The acquired company has a revenue of USD 3 million and they are targeting USD 50 million by 2010.

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Zydus Cadila has acquired  a company in the generics space which has 10 products, informs Pankaj Patel, Chairman.

He says, they have acquired Japan-based Nippon Universal for USD 3 million in a cash deal. The acquired company has a revenue of USD 3 million and they are targeting a revenue of USD 50 million by 2010.

Excerpts from CNBC-TV18's exclusive interview with Pankaj Patel:

Q: What exactly is Nippon Universal all about?

A: This is a Japanese company in the generics space privately held and we acquired 100% of the company this morning. This provides us a platform to enter the market in Japan. The company currently has about ten products in the market and they are basically catering to the hospital segment.

Now we plan to add the products through this company into Japan. Japanese market requires a local company's presence to sell the product in Japan, and this acquisition will help us to have a Japanese label. The company also has a manufacturing plant near Tokyo, which will allow us to move forward in the Japanese market in an accelerated way.

Q: What is the revenue line of this company now?

A: The company has a small revenue line at this moment, but it has a GMP approved manufacturing facility and with our product pipeline, we can rapidly grow the business in Japan.

Q: How big is it in terms of sales?

A: The sales of the company currently are about USD 3 million and the company is catering to one segment, which is the hospital segment.

Q: What can you take those sales up to, once you come in?

A: Once we come in, we can grow the sale in multiple ways and our goal is basically to reach USD 50 million in sales by 2010 in the Japanese market.

Q: What price did you pay?

A: Close to one time sale.

Q: All in cash?

A: Yes.