Lupin enters Russian pharma market with acquisition of Biocom

The Mumbai-based Lupin Limited has acquired Russia’s Biocom, marking Lupin’s foray into the Russian pharmaceutical market. As per IMS Health, pharma market in Russia recorded RUB 765 billion (about Rs 86,465 crore) in sales, placing it as one of the top 10 pharmaceutical markets in the world in 2014. For over a decade, Russian pharmaceutical market recorded double digit growth and expected to continue with this trend, projecting Russia to be one of the top 8 pharmaceutical markets in the world by 2018, as per IMS Health.
 
Commenting on the acquisition, Vinita Gupta, chief executive officer, Lupin Limited, said, “We are excited about our entry into the Russian market through Biocom. Russia is an attractive market and this acquisition will also enable our expansion into neighbouring markets as well as other Eastern European markets in the future.”
 
Established in 1991, Biocom is a fast growing generic pharmaceutical company with a major focus on therapies such as cardiovascular, central nervous system and antimicrobials for systemic use and also does contract manufacturing and secondary packaging. The Company recorded sales of RUB 861.2 million in financial year 2014 and has 118 employees. Biocom operates a modern European GMP compliant plant and was also one of the first Russian pharmaceutical manufacturing companies to receive an approved manufacturer status from the World Health Organization (WHO) in 2013.
 
Dr Maurice Chagnaud, president ? Europe and head of inhalation strategy, Lupin, commented, “Biocom is a fast growing pharmaceutical player and has recorded very positive results over the past five years. The acquisition also provides us with a strong platform to grow into the Russian market and has a lot of synergy with Lupin’s global research, technology, manufacturing and commercial expertise not to mention our global high quality product pipeline, all of which we shall leverage to grow Biocom into a market leader in the years to come.”
 
Biocom takeover is Lupin’s second acquisition in BRICS countries this year. In May 2015, it forayed into the high growth Brazilian market with the acquisition of Medquimica - a broad based pharmaceutical company engaged in the development, manufacturing & commercialisation of branded generics, pure generics and OTC products.