Bilcare, the Pune-based pharma packaging company, is close to acquire one pharma packaging company in Europe. The company has plans to invest $50 million for the proposed acquisition.
Speaking to Pharmabiz, Mohan Bhandari, chairman and managing director, Bilcare, said, "The talks are on with 2-3 companies but nothing has been finalised. We hope to finalise the deal within a couple of months. We are planning to acquire the company through our German subsidiary."
Bilcare has its 100 per cent subsidiary in Frankfurt, named Bilcare GmbH. Earlier, the company had an option to set up its own plant in Europe, but after finding it time consuming, it shifted plans to buy a company in Europe. However, he refused to divulge the location of the plant.
Planning to grab a major chunk of revenue from US pharma packaging market, which is growing at the rate of 15 % yearly, the company is adding a number of customers and investing $10 million in its US facilities. Presently, there are 50 US-based companies as Bilcare's customers and it will be increased to 80 by the end of 2006, informed Bhandari. Bilcare had acquired Pennsylvania-based packaging and research company, ProClinical Inc. last year. It is now known as Bilcare Inc. US. The facility has been approved by US FDA and US DEA.
As Pharmabiz reported earlier, with its expanding business in Latin America, the company looks for acquisition in Brazil also.
"Our first priority is Europe, but along with Europe, we are also looking for acquisition in Brazil. Presently, Bilcare has presence in other Latin American markets like Argentina, Chile, Venezuela and Columbia. The company has its own subsidiary in Brazil, Bilcare Marketing America Latina Ltd. It earns revenue of Euro 2.5 million from Europe and $2.5 million from Latin America, said Bhandari. The company plans to increase its contribution to R&D to 8 per cent of total revenue.
Bilcare has operations spread across India, Singapore and USA with regional offices in Brazil, Germany, China and Australia. Its R&D facility in India is approved by DSIR, Government of India and its facility in Singapore has been conferred with Pioneer Status by the Economic Development Board, Government of Singapore.
Presently, Bilcare has presence in the world markets with its existing customers such as Johnson & Johnson, Merck, AstraZeneca and Genome Inc, and also through its Indian customers like Dr Reddy's Lab, Ranbaxy and Nicholas Piramal, for highly innovative and scientific pharma packaging solutions. Bilcare caters to the polymer barrier film requirement of the pharma industry, i.e., mainly blister packs and enjoys 60 per cent of this market.
At present, the total pharma packaging market in Europe and the US is estimated at $40 billion.