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Lupin acquires Pharma Dynamics in South Africa

Our News Bureau - Mumbai

Lupin recently completed acquisition of a majority stake (60 percent) in Pharma Dynamics (PD) in South Africa, expressing plans to acquire further in future. PD reported revenues of 118 million rand for the year ending February 2008. PD ranks at number six amongst generic companies and is currently growing at 34 percent per annum as per IMS.

With this acquisition Lupin is focusing on private market, but has said that in future it may target the tender market too. The founder of PD, Paul Anley, remains with a significant equity holding and will continue as the CEO of the organisation.

Vinod Dhawan, President-Business Development and Asia Pacific, South-East Asia, Africa, Middle East and Latin America, Lupin, said, "PD is focused in the cardiovascular therapeutic area and also has a strong and growing presence in the OTC market with both pharma and nutraceutical brands. We estimate that in the next four years the profits of the company will triple."

Commenting on the development, Kamal Sharma, Managing Director, Lupin, said, "We are extremely excited with this entry into this significant geography. With the synergies of the two companies, we expect to be in the top league of the South African market very soon."
The South African market is estimated at $2.5 billion with $700 million alone in generics. In the last one year, Lupin has acquired four companies and PD is fifth. Sharma said that Lupin plans to invest $1 billion for the future development of the company.