The Hindu Business Line : Glenmark acquires Argentine marketing firm Servycal

Servycal is expected to close the fiscal 2005-06 with sales revenues of $4 million, Glenmark told the BSE. The acquisition was effected through its wholly-owned Swiss subsidiary Glenmark Pharmaceuticals SA (GPSA) in a 100 per cent all-cash deal. Funded through internal accruals of GPSA, the acquisition marks the first direct entry of an Indian pharmaceutical company in Argentina, the company said. Servycal focuses on oncology or cancer-related products, thus expanding Glenmark's basket of products in the South American pharmaceutical market. Glenmark has a portfolio of 17 approved product registrations (with an additional three products pending registration). Apart from Argentina, Servycal's products are registered in 12 other country markets in South America. The company has a strong retail and hospital presence in Argentina.

Mr Glenn Saldanha, Managing Director and CEO, Glenmark, stated, "Acquiring a front-end in key geographies such as Argentina is a part of Glenmark's long-term plan to emerge as a specialty /brand company marketing novel drugs, developed either in-house or in-licensed, in markets outside the US, the EU and Japan.

"A detailed plan to derive synergies from the acquisition in the near term has been developed and includes leveraging Servycal's product portfolio across our other country markets, both within and outside South America."

The Argentine pharmaceutical market is valued at $1.6 billion and is growing at the rate in excess of 10 per cent, a note from the company said.

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