Acquisition of 100% stake in the Biomeda group, Bulgaria
Our Company through its Dubai Subsidiary, Elder International FZCO has acquired a 100% stake in Bulgaria’s Elder Biomeda AD which holds 100% stake in Biomeda 2000 EOOD, which is amongst the top 10 distributors in Bulgaria and markets about 200 companies’ pharmaceutical products. Our Company is striving to make facilities of Elder Bulgaria EOOD, step- down subsidiary EU compliant and upgrade the quality control systems. This is expected to boost our Company’s international business once our Company commences full-fledged operations there, thus foraying into the European Union and CIS markets. This alliance also offers our Company an opportunity to manufacture and market our product, Shelcal, in Europe through optimum utilization of the distribution network so acquired.
Biomeda group is among the top 10 distributors & manufacturers of oral dosage pharmaceutical formulations in Bulgaria.The Bulgarian entities will launch many products in the next 8-10 months in Europe & CIS.
Bulgaria, being a part of European Union, offers an excellent opportunity for Elder Pharma to enter EU as well as CIS countries.
“This shall be our strategic gateway to the EU & CIS Markets. Bulgaria offers low infrastructure cost (compared to other EU countries), lower production & labor cost and low construction cost as compared to other EU countries.
Acquisition of 100% stake in NeutraHealth PLC in the United Kingdom
Our Company has, through its Dubai Subsidiary, Elder International FZCO acquires 100% stake in NeutraHealth PLC., an AIM listed company in the United Kingdom. NeutraHealth PLC has five subsidiaries which market and distribute a range of nutraceutical products, such as vitamins, specialized health supplements, over the counter medicines, health treatments, and a range of travel related health products. The Chairman and Managing Director of our Company, Mr. Jagadish Kantiswaroop Saxena is a Director on the Board of Neutrahealth PLC. The Scheme, under which our company through its wholly owned subsidiary in Dubai acquires 100% stake in NeutraHealth PLC UK, becomes effective from November 16, 2010.
By 2012, Elder will enjoy a pan-European presence, covering all the key markets of Europe which will be the stepping stone towards spreading its footprints across the world – both in regulated as well as unregulated markets.
Elder’s existing export markets are Asia, Africa, Latin America and European Union. Elder already exports to more than 25 countries products like Ampicillin, Amoxycillin, Roxythromicin, Azithromicin, Clarithromicin, Amlodypin Besylate, meloxicam among others. Formulations exported include Hormones, Anti-biotics, enzymes and Multi-Vitamins. The company also exports OTC and Herbal products.
Within the domestic market, Elder’s thrust continues to be on Woman’s healthcare, Woundcare, Neutraceuticals/vitamin Supplements, Cardiology, Diabetes, Dermatology, Antibiotics and CNS.
The aggressive expansion is a part of the company’s strategy to reach a turnover of Rs 1000 crore by 2012 of which about Rs 150 crore is to be derived from foreign shores.
On 7th February 2012, Our Company through its Dubai wholly owned subsidiary has increased the stake in Elder Biomeda AD, Bulgaria from existing 92.2% to 100%.