Meiji Seika Pharma’s acquisition of Bengaluru-based Medreich Limited is the first 100 per cent takeover by a Japanese company of an Indian pharma enterprise. The value of the transaction is approximately US$375mn.

The closure of this takeover is pending with Foreign Investment Promotion Board (FIPB) and Competition Commission of India( CCI ) which is a part of the legal requirement, CP Bothra, managing director, Medreich Limited told Pharmabiz.

The key achievement ensuing from this takeover is that the name of Medreich, the 38 year-old, medium sized Contract Development and Manufacturing Organisation (CDMO) which caters to the top ten global drug majors will not be changed. Its total 2,700 workforce along with its international customers would continue to exist, stated Bothra.

“There is an emotional attachment to this enterprise from an employee perspective as many of them have been here since its inception.  The ability to retain both staff and clients is seen to be the big take away from this deal,” he added.

“After an intense due diligence phase by Meiji, we were informed that they had no second thoughts to opt for a total Medreich acquisition”, stated Bothra who will continue to serve as the managing director of the company.

“The decision for Medreich sale was driven by the need to become a part of a large global conglomerate. In that context, to be a part of a large Japanese pharmaceutical organisation is an achievement. We are hopeful of a successful integration following regulatory approvals”, explained Bothra.

Meiji Holdings Co. on its part has informed the Tokyo Stock Exchange (TSE) that its subsidiary Meiji Seika Pharma acquisition would enable it to obtain cost-competitive manufacturing infrastructure and broaden its sales network of generic drugs in Asia and Africa. It can also augment its CDMO business leveraging Medreich’s manufacturing expertise, regulatory compliance and blue chip customer base comprising of Pfizer, GSK, Novartis, Sanofi, Mylan, Adcock, etc. It plans to retain Medreich’s employees who would play a key role in the future growth of the company. The company viewed that this acquisition will contribute to the realisation of its  2020 vision and increase the corporate value of Meiji Holdings.