Elder Pharmaceuticals, a Rs 600 crore Mumbai based pharma major, has extended its control over its Bulgarian subsidiary Elder Biomeda AD to 61 per cent from the present 51 per cent for an undisclosed sum. The balance 39 per cent stake in Elder Biomeda AD is held by the original owners of Biomeda group.
Alok Saxena, director international of Elder Pharmaceuticals, said, “This shall be our strategic gateway to the EU & CIS markets. Bulgaria offers low infrastructure cost (compared to other EU countries), lower production & labour cost and low construction cost as compared to other EU countries. Additionally, the WHO GMP approved and US FDA compliant seven manufacturing units of Elder in India will offer its nutraceuticals product range internationally acquired companies”.
In April 2008, Elder had formed a subsidiary in Bulgaria called Elder Biomeda AD which acquired 100 per cent equity in three leading Bulgarian healthcare companies belonging to the Biomeda group. Elder has taken 49 per cent stake from the original owners of Biomeda Group companies.
Of the three companies one has a manufacturing unit for formulations, another is a distribution company for pharmaceutical and allied products and the third is a logistics company with strategically located warehouses. Biomeda group is among the top 10 distributors & manufacturers of oral dosage pharmaceutical formulations in Bulgaria. Elder is planning to quickly spread in major regulated markets with specific focus on EU & CIS countries. The Bulgarian entities will launch many products in the next 8-10 months in that region.
Europe remains an attractive market to launch pharmaceutical products in, because centralized regulatory ruling allows for immediate access to all member states. Also, EU expansion to 27 countries offers greater market opportunities. By 2012, Elder is targeting a pan-European presence, covering all the key markets of Europe which will be the stepping stone towards spreading its footprints across the world – both in regulated as well as unregulated markets.
The aggressive expansion is a part of the company’s strategy to reach a turnover of Rs 1000 crore by 2012.