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Ranbaxy

Ranbaxy acquires 96.7% of Terapia SA, the largest generics company in Romania, for $324 million. This is Ranbaxy's third overseas acquisition that month and makes it the leading generics player in Romania's $1.2 billion pharmaceutical market. The CEO says the acquisition will provide manufacturing and strategic facilities for Europe, CIS countries, and Latin America, and synergies are immense. It will add $80 million to Ranbaxy's $1.2 billion turnover from the previous year.

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86 views1 page

Ranbaxy

Ranbaxy acquires 96.7% of Terapia SA, the largest generics company in Romania, for $324 million. This is Ranbaxy's third overseas acquisition that month and makes it the leading generics player in Romania's $1.2 billion pharmaceutical market. The CEO says the acquisition will provide manufacturing and strategic facilities for Europe, CIS countries, and Latin America, and synergies are immense. It will add $80 million to Ranbaxy's $1.2 billion turnover from the previous year.

Uploaded by

Ashok Mehrotra
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Ranbaxy acquires Terapia

Our Corporate Bureau / New Delhi March 30, 2006

$324 mn deal for Romanian firm.


 
Ranbaxy Laboratories Ltd has acquired 96.7 per cent of Romania’s largest independent generics drug company,
Terapia SA, for $324 million.
 
This is the company’s third overseas acquisition this month after it bought the unbranded generics business of Allen
SpA in Italy and the auto-injector business of US-based Senetek Plc.
 
The deal makes Ranbaxy the leading generics player in the $1.2-billion Romanian pharmaceuticals market, the
fastest growing market in the central and eastern European regions.
 
“We will have a 5.5 per cent market share. Terapia comes with its excellent facilities, which will become our
manufacturing and strategic business hub for servicing Europe, the CIS countries and even Latin America. The
synergies are immense,” Ranbaxy’s Chief Executive Officer and Managing Director Malvinder Mohan Singh said.
 
The acquisition will add around $80 million to Ranbaxy’s turnover, which was $1.2 billion in the last financial year.
The deal value is 11.6 times Terapia’s last 12 months’ EBITDA. The company’s stock rose 3.36 per cent on the
Bombay Stock Exchange to close at Rs 411. 15, up from the previous day’s close of Rs 397.80.
 
Terapia has marketing rights for 157 drugs and owns two manufacturing units. The acquisition will give Ranbaxy a
beachhead in other countries of the region as 30 per cent of Terapia’s product portfolio are registered in 15 countries,
including Russia, Ukraine and Poland.
 
“We will be introducing our products in Romania and will take Terapia’s products to the rest of Europe. Terapia
already has marketing approvals and that is definitely a short-term objective. Once the USFDA approvals start flowing
in, we will take the portfolio to the US too. But that will be a medium-term story,” Singh said.
 

Ranbaxy completes Terapia SA acquisition


Ranbaxy Laboratories Ltd has acquired 96.7 per cent stake in the leading Romanian pharmaceutical
company Terapia SA (Terapia), following approvals from the Romanian Competition Council (RCC). 

Buzz up!
Informing BSE, the company said the deal has been routed through Ranbaxy Netherlands BV. It had
announced the acquisition of the equity stake in Terapia from Terapia Holding BV for a sum of USD
324 million.

The deal benefits Ranbaxy in terms of leveraging strengths of two premier generic companies. The
transaction shall provide further impetus to the company to ease its access in the Romanian market
and facilitate its growth in the CIS countries. 

''With the completion of the transaction Romania now becomes the third largest market for us in
terms of revenue'' said Mr Malvinder Singh, CEO and Managing Director, Ranbaxy Laboratories. 

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