Mumbai, Aug. 10: Sun Pharmaceutical Industries, the speciality pharmaceuticals company, has bought the raw materials and dosage-form manufacturing operations of Valeant Pharmaceuticals in Hungary. This is Sun’s first European acquisition, since its investment in US-based Caraco.

The terms of the transaction were not disclosed.

The acquisition is likely to swell Sun Pharma’s international revenues and also enhance its presence in the European market.

International business, which now contributes around 40 per cent of the company’s revenues, is slated to rise to 50 per cent in two years. Sun Pharma is focussing on branded generics market, in addition to the US generics market through Caraco and the European generics business through partnerships.

Chairman and managing director Dilip Shanghvi said, “The purchase of this site offers us an early opportunity to enter the European generic space, building on our strengths in bulk actives and product development. This will complement our strategy to enter Europe with the UKMHRA approved plant in India, and will allow for a quick product roll out.”

A spokesperson for the company, who declined to divulge any details of the acquisition, said it would enable the company to tap the emerging opportunities in Europe. “Hungary is good place to be in,” she added.

Valeant Pharmaceuticals sold the operations as the unit was not part of its core operations.

Sun Pharma has been eyeing overseas acquisitions. It was on the lookout for a generics company in the US.

In a recent interview with The Telegraph, Shanghvi had said though the company was on the prowl, it was not involved in any active negotiation.

Initially, Sun Pharma had invested $7.5 million in Caraco, which was a loss making company. However, its fortunes turned around subsequently and Sun Pharma raised its holding to 48 per cent.

In 2004, Sun further raised the stake to 63 per cent. Its current stake in Caraco is put at 69 per cent with an option to increase it to 76 per cent based on technology transfer.

On the BSE today, the Sun Pharma scrip closed at Rs 616.25. It had opened at Rs 603 and touched the day’s high at Rs 627.