Glenmark Pharmaceuticals Limited has acquired Laboratorios Klinger in Brazil. GFL has acquired Laboratorios Klinger for a consideration of USD 5.2 million. The deal, which was made through its wholly owned Brazilian subsidiary, Glenmark Farmaceutica Ltd (GFL), is funded through a mix of debt and internal accruals.
According to Glenn Saldanha, managing director and CEO of Glenmark Pharmaceuticals said the acquisition is part of its strategy to reach out to regulated markets to explore the generic market. Announcing the Brazilian acquisition, Saldanha said that while the company is already underway with its regulated market strategy, the company also has long term plans of becoming a leader in the BRICs economies. “We have already established a strong presence in Russia while the current acquisition will bolster our presence in Brazil too,” he said.
Saldanha said that the subsidiary in Brazil, which was set up six month ago, was with an intention to use it as vehicle for acquisition. Since the company can establish in the market through Klinger’s strength, the subsidiary may be wound up or would be merged with Klinger later.
Brazil, with sales of USD 7 billion, is the largest pharmaceutical market in South America and is the world’s eleventh largest pharmaceutical market. It is one of the most attractive semi-regulated markets, which offer immense opportunities for speciality pharmaceutical companies like Glenmark. The company with its portfolio of existing generic products as well as new products in the pipeline would be uniquely poised to leverage the potential opportunities in this market.
Klinger is a leading Brazilian company with expected revenues of USD 7 million and profits of USD 1 million by December 2004. It has a work force of 176 employees with a sales force of 91 sales representatives. Klinger has 21 approved product registrations in Brazil. Klinger’s products are sold through major distributors and pharmacy chains. Klinger’s main business is generated from branded generics and also has some OTC presence with Ceklin (Vitamin C) being one of the top products for the company.
Klinger has its own manufacturing facility located in Sao Bernardo do Campo in Greater Sao Paulo that manufactures Solids (tablets, coated tablets, capsules, effervescent tablets, powders), semi solids (creams, gels, lotions) and liquids (oral suspensions, oral solutions, syrups and drops).
Glenmark is currently a research based integrated pharmaceutical company specializes in segments such as Dermatology, Internal Medicine, Pediatrics, Gynaecology, ENT and Diabetes. Glenmark Pharmaceuticals is the market leader in therapeutic groups like dermatology and respiratory with brands like Candid B and Ascoril respectively.