Mumbai-based drug major Lupin has acquired over 30 per cent stake in Generic Health Pty Ltd of Australia, one of the top 10 generics drug suppliers in the Australian market, for an undisclosed amount.
The Melbourne-headquartered Generic Health markets generic prescription and over-the-counter products in the Australian market, in a partnership model with established global generic drug makers.
The company sells approximately $500 million (nearly Rs 2,150 crore) worth of drugs in Australia, which has Rs 11,300 crore (A$3 billion) worth generics market. The total drug market in Australia is worth A$10 billion (Rs37,800 crore).
Lupin, which posted a turnover of Rs 2,773 crore (Rs 27.73 billion) last year, entered the Australian market during the last financial year by setting up a fully-owned subsidiary, currently has 16 product registrations in Australia, with 14 approvals in segments such as cardio-vascular drugs, central nervous system drugs and cephalosporins.
The potential of these products are worth A$850 million (Rs 3,200 crore) and the acquisition would help market these products in Australia, said company sources.
"We have built a significant business in this market leveraging our existing alliances with leading local generic companies which we will continue to nurture and grow," said Vinod Dhawan, a senior executive of Lupin and in-charge of the Australian region.
The privately-held Generic Health was founded in 2004 by Gavin Upiter, managing director, and a pharmaceutical executive with extensive international experience in the industry. A few months ago, General Health had entered into a partnership with Actavis to market its products in Australia.
BioTech Capital, one of Australia's largest life-science investment funds, also had invested about $2.2 million into General Health.
"The new investment arrangement with Lupin will greatly contribute to our longer-term market share ambitions. Lupin's equity investment will result in no change in the day-to-day operations of Generic Health," said Gavin Upiter.
A few weeks ago, Lupin had acquired Germany-based medicine marketing company Hormosan Pharma (Hormosan), to cater to the German market. During the last year, the company had acquired Kyowa Pharmaceutical Industry (Kyowa), one of the top 10 generic pharmaceutical companies in Japan.
Lupin's share prices fell 1.48 per cent to Rs 725 on the BSE on Thursday.
