Plethico Pharmaceuticals Ltd, is making a serious attempt to acquire retail pharmacy chains in the US and CIS countries. For funding the acquisitions the company may issue a FCCB, it is learnt. Plethico is finalizing an acquisition worth around $80 Million in the US. At the moment company is not disclosing the US company name and the acquisition may start getting consolidated by early 2008.

The company has sold its investment in CIS countries and collected an amount of $14 million. Now it is investing the same amount to establish pharmacy chain in CIS. Thus, Plethico is making its foray into the regulated market and de-risking its credit profile of CIS by moving into the cash market of retail pharmacy in the CIS itself. This as per market circles is said to be a very smart move from the Company.

Market sources feel, that sale of stake in the CIS country in favour of reinvesting in retail pharmacy chain in CIS will be path breaking for the company and would thus release the company from the credit risk so pertinent in the unregulated markets like CIS. When Pharmabiz spoke to the CFO, Sanjay Pai on the topic, he declined to comment on details and told Pharmabiz, "For the Year ended 30th September 2006, we are realising around one third of our total turnover from the CIS market and CIS is thus a strategic market for us even in the future and we are working out as to how best we could deploy the funds on merits."

It is widely expected that for the year-end of September 2007, the company will announce standalone revenues of over Rs 430 crore as compared to Rs 330 crore in the previous year end of September, 2006, which is a growth of over 30 per cent YoY. It is further expected that the US acquisition alone would generate revenues close to Rs 300 odd crore for the company post consolidation. This move will thus make Plethico an almost Rs 825 crore company by September 2008. It seems thus that the company is well on it's way to becoming a Rs 1000 crore company in the near future.

Currently, company is generating more than 50 per cent of the revenue from the sale of herbals and nutraceutical-finished formulations. Today, Plethico has a major presence in over 18 countries. The company exports to more than 50 countries through strategic tie-ups coupled with a strong marketing and distribution network in CIS and Africa.

The company has over 400 formulations in more than 39 therapeutic segments. Plethico is also into niche segments like NDDS, Cardiovascular, Diabetology and other Lifestyle drugs, nutraceuticals, medicated candies, food supplements, OTC/Consumer Products and Herbal preparations besides already being present in Generic and branded formulations overseas.