The Ahmedabad based 4th largest Indian pharmaceutical company Zydus Cadila has forayed into Spain with the acquisition of 100 per cent stake in Laboratories Combix.

Laboratories Combix which has a pure generics focus provides the right fit for Zydus entry strategy into a market that is estimated at US $1.7 billion and is growing at 21.5 per cent compared to 6 per cent for the overall pharmaceutical market in 2007. The Spanish pharmaceutical market is the fifth largest in Europe.

Laboratories Combix was established in 2006. It has a sales and marketing focus which covers 17 molecules portfolio. Additionally, it has a range of products that are pending launch or in the pipeline. The acquisition allows Zydus to jumpstart its business and leverage strength in product development, a high quality, cost competitive supply chain and operational efficiency.

The Zydus Cadila has entered into the French market in 2003 and made presence into Spain form a critical part. The European expansion strategy looks market with low generic penetration which provides ample growth opportunities for growth.

Speaking on the occasion, chairman and managing director, Pankaj Patel, said, "We had previously announced our strategic interest in this market and I believe that this acquisition offers us an opportunity to consolidate our presence as a robust generics company and a leading global healthcare provider. The Spanish generic market is forecast to grow rapidly during the coming years and we are pleased to participate in this growth".

Sidestepping the more time consuming, green field strategy to enter newer markets, Zydus has been expanding its operation globally through strategic acquisitions. Starting with Alpharma France in 2003, the group went on to acquire Nippen Universal Pharmaceutical Ltd, of Japan and Quimica e Farmaceutica Nikkho do Brasil Ltda. of Brazil in 2007.

With operation in the US, Europe, Japan, Latin America, Asia Pacific and Africa the group's formulation exports grew by 72 per cent in 2007-08. With a turnover of more than Rs 2300 crore, the group has a world class research and development centre dedicated to discovery research and nine state of the art manufacturing plants. The group has over 9000 employees worldwide committed to its mission of creating healthier communities globally.