Zydus Cadila acquires Mumbai-based Biochem

Indian drug firm Zydus Cadila says it has acquired a 100% stake in Biochem, described as one of the top 40 pharma companies in India, for an undisclosed amount. A privately-held company headquartered in Mumbai, Biochem is a well-integrated pharma player with a presence in the antibiotics, cardiovascular, anti-diabetic and oncology segments. Biochem has reported sales of 2.65 billion rupees ($42.2 million) for the year 2010-2011.

Biochem, which was established in 1959, has proven strengths in manufacturing and marketing of antibiotics, says Zydus. The top five brands of the company are Ampilox, Biotax, Monotax, Amicin and Zithrocin which together contribute to 40% of the company’s sales. Three of Biochem’s brands fall in the top 300 pharma brands of India. The acquisition strengthens Zydus’ operations in the Indian pharma market.

Commenting on this latest acquisition, Zydus Cadila’s chairman and managing director, Pankaj Patel, said: “The Formulations Business in India has always been the bulwark of our operations and we have looked at every strategic opportunity to grow and contribute to this market, either by way of novel initiatives, collaborations or acquisitions. Biochem represents the right fit as they have a significant presence in our core therapy areas and also add value to our product offerings in the key growth segments.”

This is Zydus Cadila's third acquisition this year. In July, it acquired 100% stake in Germany-based animal drug company, Bremer Pharma GmbH, from ICICI Venture and in June, it acquired USA-based Nesher Pharmaceuticals.