Zydus Cadila has acquired Brazil-based generic company, Nikkho Pharma, for $25 million.

The Brazilian industry is approximately $10-12 billion and the generic penetration in the market is estimated at only $500 million. Thus, there seems to be a lot of untapped potential in that market.

Strides Arclabs, for instance, has made approximately $65-70 million in 4-5 years. Zydus Cadila had been looking at this move for the past 7-8 months and the dule-diligence had been on for that time; and $25 million dollars and 8-9 times the EBIDTA,  it looks to be a promising market to move into, by the company.