Ipca Labs to acquire Tonira Pharma

Mumbai-based pharma major Ipca Laboratories Ltd has picked up a stake in Vadodara-based Tonira Pharma Ltd and it plans to pick up a further equity to get controlling stake of the company.

Business Standard has learnt that Ipca Laboratories has picked up 14.09 percent equity of Tonira Pharma Ltd at Rs 28 per share.

According to sources, Ipca Laboratories acquired 9 percent equity stake from existing promoters of Tonira Pharma. One of the promoters of Tonira Pharma had signed a memorandum of understanding (MOU) with Ipca Laboratories, as per which Ipca Laboratories acquired 9 percent stake in Tonira Pharma.

Ipca picked up the remaining equity from the open market. Sources add that after acquiring 14.09 per cent stake in Tonira Pharma, Ipca Labs is now eligible to acquire further equity in Tonira Pharma.

Sources say that Ipca Laboratories Ltd is interested in the Active Pharmaceutical Ingredients (API) facility and would like to have management control as well. Ipca is trying to acquire another 30 per cent equity from the shareholders of Tonira Pharma at Rs 29 per share. This is likely to take another 2-3 months.

Ipca Laboratories believes that acquisition of Tonira Pharma will provide operational flexibility, synergy and extended product range for marketing. The acquisition will also facilitate use of Tonira's Research and Development and manufacturing facilities.

Tonira, at present, has two manufacturing sites. The site at Ankleshwar (Gujarat) has WHO GMP approval. While its second facility at Vadodara (Gujarat) was commissioned recently in January 2005 and is designed to meet USFDA standards for cGMP.

Tonira boasts of a dedicated R & D team, comprising scientists holding Doctorate and Masters degrees in organic chemistry and experienced in the synthesis of molecules.

Ipca Laboratories has strong presence in APIs and formulations. It has operations in over 100 countries, and its exports account for over 53 percent of the company's income.