Ranbaxy To Buy P & Gs Germany Brand For $5m

Ranbaxy Laboratories, India's largest pharmaceutical company, is close to finalising a deal to acquire a healthcare brand from Procter & Gamble in Germany. According to sources, the drug is an anti-hypertensive and diuretic and has a strong equity with doctors in Germany. The cost of the acquisition is likely to be around $5 million.

"We have been looking at an acquisition in Germany for a long time," the Ranbaxy spokesperson said, refusing to divulge any further details. "We are still in the process of negotiation," he said.

This will be the second acquisition by Ranbaxy in Germany, among of the world's largest generic markets. In 2000, Ranbaxy bought Basics, the generics business of Bayer.

 

After completing the first full year of operations, Basics GmbH, the Ranbaxy subsidiary in Germany, recorded a turnover of $5.7 million in 2001 and a loss of $ 0.9 million.

The company is also looking at launching at least eight new products in Germany this year, most of which will be in-licensed. "Products with high-yield and growth potential have been identified to endow the company with a basket of generic products in a few years," said the spokesperson.

Two new products, Loratidine and Ofloxacin, were launched by Basics GmbH in 2001. Loratidine was in-licensed to quickly gain entry into the market. Ofloxacin, the first Ranbaxy product launched by Basics in Germany, was made available with retailers on the day its patent expired. The generics market for this product is virtually controlled by Basics, with its brand Oflox Basics.

Basics also implemented a new finance system last year with a remote electronic link to the warehouse, facilitating order processing and direct invoicing. The company also finalised supply agreements with major German generic companies, employed a contracted field force to reach doctors, and outsourced a warehouse and a distributor last year.