Bafna Pharma close to sealing UK buy, launch 27 new products

In order to further augment its presence in the highly-regulated British market, BSE-listed Bafna Pharmaceuticals is close to acquiring a company in the UK having approvals to sell generic drugs, a source close to the development said.

The Chennai-headquartered company already has approvals from authorities to sell 11 molecules in the UK and the target company's kitty of 96 molecules will help the company immensely, the source, who did not wish to be identified, told PTI here.

Bafna, which had clocked a turnover of Rs 75 crore in FY 10, has already "sounded people" for raising debt and equity infusion through the private equity route to complete the acquisition, the source said, refusing to divulge the deal size.

"Negotiations are in the advanced stages," he said.
   
When contacted, the company's Chairman and Managing Director, Chand Mahaveer Bafna, refused to comment on the impending deal.
   
The company is also targeting reducing the share of the low-margins contract manufacturing and generic drugs business in its pie and is all set to launch a brand in the lifestyle-related product segment in August.
   
Courtesy the foray into self-owned brands, the company is expecting the margins to double to eight per cent and the turnover to touch Rs 100 crore in FY 11.

"It would be a line of 27 prescription-based maintenance and oral products. By 2015, it is estimated that every fourth person in India will have lifestyle ailments. We plan to launch the product in West Bengal, Kerala and Tamil Nadu initially," Bafna said.
   
The pharma company has hired 52 people to market the products and will be primarily focusing on under-serviced segments comprising of lower rung consultants and Tier-II and III cities to push its lifestyle products line.
   
The company plans to manufacture the products at a new manufacturing facility which went up-stream recently while efforts are also on from the R&D team to come up with newer formulations, Bafna said.
   
It is also consolidating its share in the Sri Lankan market, which contributes a third of its overall revenues by selling 76 generic drugs, he added.