POP the pill

Mumbai, Feb. 10: Hyderabad-based Aurobindo Pharma Ltd will acquire Milpharm Ltd, a UK-based generic formulation company, for an undisclosed sum. The acquisition is being done through Aurex Generics Ltd ? Aurobindo’s wholly-owned subsidiary in the UK.

Aurex Generics entered into a share purchase agreement with Whyte Group Ltd and Iracot Ltd to acquire their 100 per cent shareholding in Milpharm, Aurobindo has informed the stock exchanges.

Milpharm sells generic formulations mainly in the UK. According to Aurobindo, Milpharm owns over hundred approved marketing authorisations by Medicines and Healthcare Products Regulatory Agency, UK.

Milpharm recorded sales worth ?0.7 million for the 12-month period ended September 30, 2005. Aurobindo said the marketing authorisations are classified into various segments that include the central nervous system, cardio-vascular, diabetology, anti fungal, anti bacterial, oncology, semi-synthetic pencilllins, anti diabetic and non steriodal anti infectives.

While Milpharm has established relationships in the generic pharmaceutical segment in the UK, Aurobindo hopes that the acquisition will enable it to build on these relationships to participate in the generic pharmaceuticals value chain. It also hopes to build on the platform of Milpharm and increase the product portfolio for its customers.

This is Aurobindo’s first acquisition in Europe. The company is pursuing the inorganic growth in Europe to reduce the time to market and build stronger relationships in the generic value chain.

For the third quarter of the current fiscal, Aurobindo has reported a profit after tax of Rs 26.19 crore, up from Rs 10.59 crore in the corresponding period last year. The total income was Rs 416.97 crore against Rs 323.34 crore last year. Export sales during the period was Rs 233.8 crore, up from Rs 152.3 crore in the same period last year.