Elder Pharmaceuticals, a Rs 550 crore pharmaceutical company is growing organically as well inorganically. The company recently acquired 100 percent stake in three Bulgarian pharma companies through its wholly owned Bulgarian subsidiary Elder Biomeda EAD in a share swap deal. Through organic route, Elder is setting up new injectable manufacturing plant at Uttaranchal. The new facility is expected by the company to commence commercial activity in three to four months. The existing owners of Biomeda Group companies will in exchange be given 49 percent shares of Elder Biomeda EAD. Bulgaria, being a part of European Union (EU), offers an excellent opportunity for Elder to enter Eastern European as well as Commonwealth of Independent States (CIS) countries. Alok Saxena, Director International, Elder, said, "We are expanding our foothold in domestic as well in the international market. Currently, in our R&D centre we have eight to 10 new products which are in different stages of completion. We are expecting that all new products will be available in the market in another year." Out of Elders three acquired companies, one is a manufacturing unit for formulations, another is a distribution company for pharma and allied products and the third is a wholesale and logistics support company. The Bulgarian acquisitions will enable Elder to 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. Commenting on international acquisitions, Saxena said, "On one hand, the WHO Good Manufacturing Practices (WHO GMP) approved and US Food and Drugs Administration (FDA) compliant six manufacturing units of Elder in India can offer back-end manufacturing of products internationally. On the other hand, Elder can use acquired companies for introducing its most successful products in newer, international markets." The company was attracted to the Bulgarian market because of its skilled labour, which has an advantage in terms of lower labour cost compared to other European countries. Being a member of EU, patent rules are in line with EU standards. Bulgaria, by virtue of its strategic geographical location, is a natural gateway to the larger markets of EU and CIS. Elder has aggressive growth plans for the international markets in the years to come. During the last 18 months, it has acquired a 51 percent stake in Wincom Formulations, Ghana, a 21 percent stake in Neutra Health of UK, and hiked stake to 49 percent in its joint venture (JV) in Nepal known as Elder Universal Pharmaceuticals, in addition to the acquisition of 51 percent stake in Biomeda OOD, Bulgaria. It has its international presence in more than 25 countries for products like ampicillin, amoxycillin, roxythromicin, azithromicin, clarithromicin, amlodypin besylate, meloxicam among others. The company is also exporting its formulation products of hormones, anti-biotics, enzymes and multi-vitamins. In the domestic market, Elders thrust continues to be on womens healthcare, wound care, nutraceutical vitamin supplements, cardiology, diabetes, dermatology, antibiotics and central nervous system (CNS) disorders. Elaborating on its future international expansion, he commented, "Internationally, we are looking at inorganic growth and are looking at further strategic acquisitions of brands or companies in Africa and Asia. We are not interested in completely buying out companies and would prefer to take stakes and work with the existing local management. If attractive opportunities come our way, we may invest upto Rs 100 crore for foreign acquisitions." The aggressive expansion is a part of the companys strategy to reach a turnover of Rs 1,000 crore by 2011, of which about Rs 150 crore is to be derived from foreign shores. Source: Express Pharma

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