SOHM to acquire unnamed Indian dermatology company

SOHM (PINKSHEETS: SHMN), a USA-based import/export organization specializing in global trading in generic drugs in emerging markets, says that it has signed a letter of intent (LOI) to acquire a high-growth dermatology company based in India. It did not reveal the name of the firm, nor the cost of the acquisition.

On the successful close of the acquisition, which is expected in the second quarter of fiscal year 2011, the company would add 17 new product offerings, which it projects will contribute in excess of $1 million in revenue, with significant profit margins. SOHM expects this acquisition to be accretive to earnings and cash flow within the first year, allowing it to report its first profitable year of operations since inception.

Shailesh Shah, president and chief of SOHM, noted that key acquisitions are a strategic goal for the company. He stated that the firm does not only gain new products to further diversify its offerings, but increases its revenue and brand awareness significantly throughout India and the entire Asian region.