Plethico Pharmaceuticals of India has acquired a 20% stake in a retail pharmacy chain in the CIS from Tricon Holdings of Hong Kong for $20 million. Tricon deals in the pharmaceutical retail business with a sourcing base in the UAE.
Tricon has 300 retail pharmacies across the CIS and caters to local as well as multinational brands, generics and disposables. Plethico hopes to add about Rs1 billion ($19.9 million) in sales through the acquisition in its first year, local media reports say.
Chirag Patel, CEO and whole time director of Plethico, said the CIS was largely a "credit hungry" market and the only "near cash" business in the CIS is retail pharmacy. Plethico expected to consolidate its position in the CIS through the acquisition, Mr Patel added.
Last year, Plethico acquired Natrol in the US. Natrol manufactures and markets branded nutritional products.
Plethico, which focuses on herbal and nutraceutical formulations, pharmaceutical formulations and OTC products, divested its domestic ethical pharmaceutical division to Shreya Life Sciences in 2003. Plethico's non-compete agreement with Shreya recently ended and the company is expected to focus on niche lifestyle drugs.