Ranbaxy acquires Terapia for 324 mn

8216;8216;The deal will combine the strengths of two premier generic companies and allow us to leverage an expanded base in the rapidly growing Romanian pharmaceutical market, across the european Union and the CIS markets,8217;8217; Ranbaxy Laboratories Chief Excutive Officer and Managing Director Malvinder Mohan Singh said.

Ranbaxy also will be moving its European manufacturing to the two facilities of Terapia, which has the capacity to make oral and liquid formulations and sterile injections.

8216;8216;In future we intend to make Terapia8217;s facilites our hub for manufacturing in Europe,8217;8217; Singh said, adding though the facilities are not yet USFDA approved, it will be filing an application in the near future.

He said the acquisition would help the company unleash new opportunities in Romania and pan European synergies and it will provide Terapia with additional products to launch in the domestic market at very cost competitive levels, thereby lowering costs and delivering value to both consumers and the domestic healthcare budget.

The acquisition comes at a time when Ranbaxy needs to give a boost to its European presence in view of shrinking margins in the US market due to price erosion.

8216;8216;It is absolutely a good buy for us as it will give us access to one of the fastest growing markets in eastern Europe, CIS countries with an annual growth rate of about 15-20 per cent,8217;8217; Singh said.

Terapia has 30 per cent of its product portfolio registered in over 15 countries including the high growth generic markets of Russia, Ukraine and Poland.

The company is on the look out for more such acquisitions in and around Europe. 8216;8216;We are looking at more mergers and acquisition activities as there8217;s a lot more to be done in Europe,8217;8217; he said, adding that the company is keeping its options open in the emerging markets as well.

Welcoming the deal Terapia Chief executive officer Stephen Stead said that the combination of the commercial operations of the two companies will establish a market leading position in the domestic primary care market and a superb platform for the introduction of new products.