Biocon eyes more acquisitions overseas

Mumbai: Biocon Ltd, the Rs 1,000 crore biotechnology company, is eying overseas acquisitions to boost its sales globally and gain access to innovative drugs.

Earlier this month, Bangalore-based Biocon had agreed to acquire 70 per cent of German marketing firm AxiCorp GmbH for Rs 174 crore (30 million euros or $45 million) to boost distribution and marketing network in Europe.

Biocon is funding this acquisition with its cash reserves. In addition to distribution business, AxiCorp also operates in the off-patent pharmacy, drugs logistics and development market.

Biocon, which makes insulin, cholesterol-lowering statins and other branded drugs, is looking for smaller acquisitions – $10 million or thereabouts – reports quoted its chairman Kiran Mazumdar-Shaw as saying.

Currently, Biocon generates 25 per cent of its turnover from the EU and proposes to take it to 40 per cent by the end of the next financial year.

In a similar move last year, Biocon floated a joint venture with a West Asia-based firm to sell its products in the Gulf markets.

Biocon reported a five-fold rise in quarterly profit after one-off gains from sale of its enzymes unit to Denmark's Novozymes, and forecast more growth despite fears of recession in its key US market.