Matrix to acquire Belgian drug firm Docpharma

EPP News Bureau - Hyderabad

Matrix Laboratories (ML) has decided to acquire the Belgium-based $263-million pharma company Docpharma NV, in what could be considered as the largest ever acquisition executed by an Indian pharma company. The announcement comes on the back of Hyderabad-based Matrix Labs recent announcement of its plans to acquire Strides Arcolab, according to a company press release.

The latest acquisition will enable the Matrix-Docpharma combine to leapfrog into the premier league of top-five Indian pharma majors. ML has signed a share purchase agreement with Docpharma promoters for acquiring 13,70,085 shares, constituting a controlling stake of around 22 per cent, at a price of 34 euros per share. Matrix would go for a mandatory public takeover bid for acquiring the balance 78 per cent shares held by public through an all cash offer, the release added.

Matrix proposes to initially finance the transaction through a combination of cash on hand and bank borrowings. It proposes to consider, if required, raising funds in the capital markets to reduce bank borrowings post-transaction, the release further added.

Docpharma, a pharma sales and marketing major backed by strong portfolio of around 130 registered dossiers in the EU market, currently has presence in Belgium, Netherlands, Italy and France. Matrix would retain Docpharma’s brands and trade names in their markets. Further, Matrix and Docpharma have agreed that Leon Van Rompay and Stijn Van Rompay would remain and CEO and COO of Docpharma, respectively, the release said.