Mumbai, March 27: Ranbaxy Laboratories Ltd will acquire the unbranded generic business of Allen SpA, a division of GlaxoSmithKline (GSK), in Italy for an undisclosed sum. The acquisition, to be done through Italian subsidiary Ranbaxy Italia SpA, will come into effect from April 1.

Allen SpA has operated in Italy since 1932. Sources said the sale was part of the multinational’s plan to focus on marketing and distributing prescription drugs and other healthcare products in Italy.

Though Ranbaxy officials did not comment on the acquisition cost, they said according to the terms of the agreement, the company has the first right of refusal on purchase of GSK drugs that go off patent.

They added that it would give the company a headstart in Italy.

Ranbaxy’s Italian operations started in September 2005. It is currently engaged in filing its portfolio of generic products with the Italian Health Authorities. Ranbaxy plans to launch its first product, Sertralina Ranbaxy, in May.

The acquisition will give Ranbaxy a readymade portfolio for which it will not have to seek any approvals. “It will not only give us ready access to a substantial product portfolio, but also a headstart in a country where operations were kicked off only recently. Allen SpA has a portfolio of anti-infective and anti-depressant drugs,” Ranbaxy officials said.

Malvinder Mohan Singh, CEO and MD of Ranbaxy Laboratories Ltd, said, “This acquisition of the Allen generic business from GSK will put Ranbaxy’s growth plans in Italy on fast track. This product portfolio complements Ranbaxy’s own pipeline of products for the Italian market and will enable the company to cash in on opportunities arising from future patent expiries.”

According to Ranbaxy, the Italian generic market is one of the fastest growing ones in Europe. According to IMS, December 2005, the value of the Italian generic market was approximately 350 million euros ($420 million), with an annual growth rate of 49 per cent.