Elder Pharmaceuticals is buying out three small Bulgarian pharma companies through its wholly-owned subsidiary Elder-Biomeda in a share swap deal. The three companies have collective sales of around e8-10 million.
All the three companies are sister concerns of Biomeda. In August, Elder entered into an agreement to buy 51% stake in Biomeda for e5 million. Now, the Indian company plans to increase that stake to 61%. The promoters of the three companies in return will hold the remaining 39% in Biomeda.
Elder Pharmaceuticals director International Alok Saxena said, “We have six FDA approved plants in India and we will use these companies to introduce our products in Europe and other markets. We plan to launch many products in Europe & the CIS through the Bulgarian entities in the next six months.”
One of the three companies is among the top 10 distributors and manufacturers of oral dosage pharmaceutical formulations in Bulgaria. Elder has received the regulatory approval from Bulgarian government and is expected to close the deal in the next few weeks. This is the company's fourth international acquisition in the last one-and-a-half year.
It acquired a 21% stake in the UK-based Neutra Health, an AIM-listed company, and hiked stake to 49% in its joint venture in Nepal called Elder Universal Pharmaceuticals. The company is now looking at strategic acquisition of brands and companies in Africa and Asia.
Many Indian companies are looking at low cost European countries such as Romania, Bulgaria, Poland and the Czech Republic to spread their presence in the European market. In a bid to encourage domestic manufacturing, the local governments of countries like Romania has proposed a cap on prices of drugs imported into the country.