Hikma picks up stake in Unimark

Nasdaq-listed pharma company Hikma Pharmaceuticals is picking up a minority stake (less than 25 per cent) in Ahmedabad-based bulk drug maker Unimark Remedies for $33.3 million(around Rs 148 crores). Unimark is planning to sign an agreement with Hikma around mid-May that will enable the company to market products in the US and EU under the Unimark brand.

While Unimark did not divulge the exact stake size, Yogesh Parikh, executive director, Unimark Remedies, said "Hikma is picking up a minority stake in Unimark, less than 25 per cent. It is a $731 million company with presence in the US, EU and the MENA (Middle-East and North Africa) countries. " Hikma posted a profit of $99 million in the 2010 fiscal.

Parikh said that while Unimark Remedies manufactures active pharmaceutical ingredients (APIs), Hikma makes generic formulations. "This is a backward integration step for them, and at the same time, we can bank on this collaboration to enter the generic market in the US and the EU. The products could be marketed both under the Hikma brand and the Unimark brand. We will sign an agreement with Hikma in May in this regard", he explained.

The size of the generic drugs market in the US is around $57 billion(Rs 2.5 lakh crore), while the generics market in the EU is estimated to be around $50-55 billion(Rs 2.2. to Rs 2.5 lakh crore). Unimark is aiming to garner a 20 per cent market share for any of the new products in these markets. Unimark’s product range includes betalactams, cephalosporins, carbapenems and covers a number of therapeutic segments including cardiovascular, anti-asthma and anti-infectives.

Commenting on the transaction, Said Darwazah, CEO of Hikma said, “Through this strategic partnership, Hikma and Unimark will collaborate on the development of strategic APIs and ANDAs. Unimark’s strong technical and R&D capabilities will complement Hikma’s in-house R&D efforts and are expected to enable Hikma to bring more products in more therapeutic categories to market globally.”

Unimark operates three API facilities, two of which are US FDA approved and two R&D centres in India. The Rs 650 crore company targets to touch revenue figures of Rs 1500 crore by 2013.