Integrated pharma manufacturing company Surya Pharmaceuticals Ltd has acquired ActivOn, a leading OTC analgesic drug brand in the US with global marketing rights, as part of a $22 million deal.

Chandigarh-based Surya Phama said the deal was struck through Surya Pharma (Singapore) Ltd, which acquired Ameshire Investment Corp that held the rights to the drug brand.

The acquisition was funded through internal accruals and debt financing from Exim Bank, Surya Pharma said in statutory filing with the Bombay Stock Exchange (BSE).

ActivOn is a leading OTC analgesic brand in the tropical analgesic category in the US market. It is used to provide relief from muscle and joint pain associated with arthritis, backache, strains, bruises and sprains.

Through the acquisition, the company also adds brands such as Preferon, Firston and Renewin. Surya would also get global marketing rights of Headon, another leading brand outside the US. 

"This acquisition will not only entitle us to ready shelf space with leading retailers like Walmart, Walgreen, CVS, RiteAid etc, but also would be instrumental in establishing our presence in the US markets. Our presence in the coming years would offer active opportunity to launch our OTC/ FMCG products using ActivOn's distribution set-up," said Hariom Bhatia, CEO of Surya Pharma.

The flagship of the Surya Group, Surya Pharmaceuticals is one of the largest manufacturers and exporters of mint/menthol derivatives. The company has a state-of-the-art, multi-location manufacturing facility in North India.

The company currently employs more than 2,500 personnel across locations within India as also in overseas offices in China, Singapore and the US, including its R&D centre at San Diego.

The company reported net profit of Rs75.52 crore in the financial year ended 31 March 2010 against Rs53.35 crore in the previous financial year and an EBIDTA of Rs166.52 crore against Rs115.21 crore in the previous year.

The company reported net revenues of Rs114.4 crore during the 2009-10 financial year, recording a 56 per cent growth year-on-year.

For the first half of the current financial year (2010-11) the company earned a net profit of Rs49.09 crore, against a net profit of Rs32.41 crore in the first half of the previous financial year.

EBIDTA for H1-2010-11 stood at Rs117.36 crore against Rs79.12 crore in the previous year period. Net revenues for the first half of the current financial year increased to Rs754.4 crore from Rs480.82 crore in the first half of the previous financial year.