A study of the performances of brands acquired by pharma companies during the last two years has shown that their overall growth after acquisitions has been marginal at six per cent, according to a city-based securities firm. Various companies acquired a total of 1328 brands in the 24-month period till March 2002.

Among the top companies, the maximum degrowth was seen by Cipla, a company which acquired just two brands. They degrew at 21 per cent.

GlaxoSmithKline Pharmaceuticals Ltd, which had acquired seven brands in the period, also degrew, though to a lower extent at 19 per cent. Sun Pharma had acquired 55 brands which contributed 11 per cent to the turnover and degrew at 17 per cent.

Dr Reddy's Laboratories had acquired six brands which contributed 4 per cent to the turnover and degrew at four per cent. Aventis Pharma had acquired two brands which contributed one per cent to the company's turnover and degrew at four per cent. Pfizer has acquired three brands which are degrowing at nine per cent.

An industry source said that while acquiring brands you couldn't shift the good from bad. This is because the sale would not happen if buyers become so choosy. Also, for most of the star brands that fall in one's kitty by way of acquisition, it must be noted that a few duds accompany them. It is the presence of these duds that hits the overall growth rate of companies even if some of the brands show remarkable growths. Just because the average is bad, one should not infer that the acquisitions have not really been a good vehicle of growth, the source said.

On the positive growth side are companies like Unichem Labs and Alkem Laboratories Ltd. Unichem Labs has acquired four brands and recorded a massive growth of 394 per cent. Alkem Laboratories have acquired two brands which are growing at 107 per cent.

Zydus Cadila had acquired four brands in the period contributing four per cent to the company's turnover and growing at 53 per cent. Glenmark has acquired 14 brands which are growing at 52 per cent. Ranbaxy had acquired three brands which contributed one per cent to the total turnover and grew at 23 per cent.

Nicholas Piramal had acquired 13 brands which contributed six per cent of the turnover and grew at 19 per cent. Novartis India Ltd has acquired seven brands which are growing at 13 per cent. Wockhardt had acquired two brands which are growing at six per cent.