Zydus Cadila acquires Brazilian company Nikkho
25 June 2007
Ahmedabad: Announcing its second overseas acquisition this year, the Rs1800-crore Zydus Cadila has signed an agreement to acquire 100-per cent stake in Quimica e Farmaceutica Nikkho do Brasil Ltda (Nikkho), a mid-sized, privately held company in Brazil. Brazil is the largest Latin American pharma market estimated at $8 billion.
The acquisition is being made through Zydus Healthcare Brasil Limitada, the step-down wholly owned subsidiary of Cadila Healthcare Ltd.
Headquartered in Rio de Janeiro, Nikkho is a growing and profitable pharmaceutical company with a manufacturing facility and caters exclusively to the Brazilian prescription drugs market.
Nikkho currently markets 22 products under 13 different brands. It also has nearly 50 registered brands, which are yet to be launched. The over four-decades old company posted sales of $26 million for the calendar year 2006. The consideration paid represents sales multiple of around one.
Zydus Cadila, which had set up its Brazilian subsidiary in 2002, has already registered 13 products, which are being marketed as generics. The acquisition will boost Zydus'' existing generic business in Brazil by providing enhanced reach and distribution, apart from strengthening its position in the branded generics business in Brazil.
Nikkho''s product basket comprises therapies across a wide range of therapeutic segments such as general medicine, paediatrics, gynaecology, neurology, gastroenterology, otolaryngology, respiratory, dermatology, and others.