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Lupin buys Mexican eyecare firm

Mumbai, March 27: Lupin today forayed into the Latin American pharmaceutical market when it announced the acquisition of Laboratorios Grin, S.A. De C.V. (Grin), Mexico, for an undisclosed sum.

Grin is a specialty pharmaceutical company engaged in the branded ophthalmic products and recorded revenues of around $28 million in 2013. Lupin will acquire 100 per cent in the company, which has over 275 employees.

Lupin, which posted net sales of Rs 9,462 crore in 2012-13, derives around 40 per cent of its topline from the US. This is followed by India at 25 per cent and Japan at around 14 per cent. The balance is spread among Europe, South Africa and the rest of the world.

Sources close to Lupin said the acquisition was a win-win deal for both Grin and the company.

To begin with, the Mexican market is seen as having huge potential. At present, valued at $13.5 billion, the market is growing at 9-10 per cent, and it is expected to cross $18 billion by 2018, according to IMS and other think-tanks.

Further, the growing Mexican ophthalmic market, which is currently valued at $275 million, is expected to reach $450 million by 2017-18 with the top four companies there projected to occupy 80 per cent of the overall ophthalmic market.

Grin is the fourth largest player in the Mexican market.

According to Lupin, the acquisition will give it access not only to the Mexican, but also other Central American and the larger Latin American continent, thus boosting revenues from the rest of the world.

On the other hand, it is felt that Lupin’s strong presence in the US and other markets will help in the growth of Grin.

“This acquisition is a reflection of Lupin’s commitment to expand into Latin America and build its global specialty business. We see a lot of synergies in this acquisition and plan to bring our ophthalmic pipeline to build the Grin business as well as leverage their commercial presence to enter other promising therapy segments,” Lupin CEO Vinita Gupta said.

This is the second overseas buy by Lupin in more than a month. In February, it acquired Nanomi B.V. in the Netherlands. Nanomi has patented technology platforms to develop complex injectable products.

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