Announcing its second overseas acquisition this year, Zydus Cadila signed an agreement to acquire 100% stake in Quimica e Farmaceutica Nikkho do Brasil Ltda. (Nikkho), a mid-sized, privately held company in Brazil. The Company is profit making and had posted sales of US$ 26 mn for the Calendar Year 2006. The consideration paid represents sales multiple of around 1.
With the group already present in the pure generics market, this strategic acquisition brings in an added advantage of making a foray in the 'branded generics' business in Brazil. The Brazilian pharma market is the largest of the Latin American markets estimated at $ 8 bn. 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.
With a strong marketing network, Nikkho's sales force of 125 people covers all the major markets in Brazil, and enjoys a good 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, gynecology, neurology, gastroenterology, otolaryngology, respiratory, dermatology, and others.
The company's plant located at Rio De Janeiro has a total production capacity of 4.99 million ampoules/annually of both injectable and oral liquids and 96 million units/annually of solids (tablets). The company currently markets 22 products under 13 different brands. It also has nearly 50 registered brands which are yet to be launched.
