Aurobindo Pharma has acquired business assets of the UK-based generic drug maker Milpharm.
The Hyderabad-based company has signed a memorandum of understanding with the promoter of Milpharm -- Whyte Group and Iracot -- for acquisition of the £7.7 million company. Under the terms of the agreement, Aurex has acquired 100 per cent shares of Milpharm.
Although Aurobindo was not forthcoming on the deal value, sources close to the development said it had agreed to pay almost equal amount of the UK company's sales.
The company would finance the acquisition by utilising a part the $600 million that it had raised through convertible bonds in 2005.
Sources at Aurobindo Pharma said the acquisition, the company's first in Europe, would equip it with a wide marketing platform. Milpharm has 18 product licences in the pipeline. The company is pursuing inorganic growth in Europe to reduce time to market and enhance relationships in the generic value chain.
Aurobindo, which has bulk drug supply contracts with European companies, had been looking for front-end acquisitions in the European market.
Milpharm recorded sales of £7.7 million for the 12 months ended September 30, 2005. It enjoys about 100 per cent market share in some specific therapeutic segments in the UK and certain other European markets.
Milpharm has several technology proposals also in its hands now.
Aurobindo will reach out to critical mass with a readily available product portfolio.
The company sources also said the company would initially use the Milpharm licences for the UK market.
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