Late on Thursday, Indian pharmaceutical major Lupin announced its entry into fast-growing, USD 20 billion, Russian market by acquiring 100 percent stake in ZAO Biocom. Biocom is generic pharma firm with focus on cardio-vascular, central nervous system and antimicrobials for systemic use. In 2014, Biocom recorded sales of 861.2 million rubles (nearly Rs 98 cr). Calling Lupin's buyout strategic, Barclays said it remains overweight on the stock with a target price of Rs 2012.Here are top five reasons why Barclays gave thumbs up to Lupin's choice:*Russia is among the top 10 pharma markets globally. *IMS Health projects Russia to be one of the top 8 pharma markets by 2018.*Lupin will use the buyout to focus on geographical expansion and acquiring brand presence in emerging markets.*Lot of headroom for cross-selling, significant production capacity, and medium-term potential to expand into Eastern European markets. *Ruble depreciation and local market disruptions may have made the deal relatively inexpensive.
At 12:07 hours IST, the scrip of Lupin was quoting at Rs 1,905.90, up Rs 36.20, or 1.94 percent on the BSE.
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