Mumbai based Lupin Limited has completed the acquisition of a majority stake in Pharma Dynamics (PD) in South Africa. PD is amongst the fastest growing generic companies and commands a premium image with the medical profession with a clear leadership in the cardiovascular segment.
PD reported revenues of Rand 118 million for the year ending February 2008. PD ranks at number 6 amongst generic companies and is currently growing at 34 per cent per annum as per IMS.
The founder, Paul Anley, remains with a significant equity holding and will continue as the CEO of the organization. The South African market is estimated at USD 2.5 billion. Generics currently are a third of the market and growing rapidly, a Lupin release said.
Commenting on the development, Dr. Kamal Sharma, managing director, Lupin said, "We are extremely excited with this entry into this significant geography and we are pleased that Paul Anley will continue to lead the company. With the synergies of the two companies, we expect to be in the top league in the South African market very soon."
Pharma Dynamics MD, Paul Anley said that the partnership will be of considerable benefit to PD's position in the generics industry locally. "The equity acquisition by Lupin gives us increased access to international research and development which will further strengthen our local position", he said. Paul Anley added, "We look forward to leveraging and rapidly expanding our market share in the Southern African markets."
In the current year, PD will launch at least 12 new products, which is one a month, much higher than industry standards of about four new products per year. The pipeline of new products will drive growth and PD has the most extensive pipeline of new products in the country due to a network of strong alliances with international manufacturers. The equity participation by Lupin will strengthen its position. The backward integration capabilities of Lupin will assist with patent issues, regular and reliable supplies and overall process control. The dedicated global business development department will ensure continual exposure to international companies and product opportunities.
Lupin is amongst the fastest growing pharmaceutical company in India with dedicated R&D facilities and is fully backward integrated with presence in many global markets. This strategic partnership will provide significant benefits for both parties. PD will gain access to Lupin's existing product pipeline and manufacturing expertise, while Lupin will gain access to the established brands and supply chains in South Africa.