The Hindu Business Line : Lupin looking for overseas acquisitions

FRESH overseas acquisitions and marketing alliances with technology-driven pharmaceutical companies in the US and Europe, apart from initiatives to tap the growing clinical trials market in India, form part of the expansion programme charted out by the Mumbai-based Lupin Ltd.

The company now intends to shift its overseas acquisition and marketing alliances programme to a higher gear, following its successful placement of $100-million foreign currency convertible bonds. The bonds have a tenure of five years and are convertible into equity shares at a premium of 50 per cent of the Bombay Stock Exchange closing price of Rs 756.05 as on December 6, 2005. The yield to maturity of the bonds is set at 6.05 per cent per annum.

"The bonds are expected to be listed on the Singapore Stock Exchange. Part of the proceeds will be utilised to fund our growth programme, including acquisitions in the US and European markets," Dr Kamal K. Sharma, Managing Director of Lupin Ltd, told Business Line.

Target companies: Lupin's target companies, both for acquisition or marketing alliance, will be those engaged in similar segments in the pharma industry. "The target companies will be those that could do with additional marketing contributions or have fresh manufacturing requirements," said Dr Sharma.

The company, which has 11 USFDA-approved manufacturing facilities, had invested some $25 million over the last two years for its expansion programmes. It recently concluded a marketing alliance with Japan's Kyowa Pharmaceutical Industry Co to collaborate in marketing finished dosage forms or formulations in Japan. The agreement covers the cardio-vascular, CNS (central nervous system), gastro-intestinal and anti-infective segments. Lupin will develop and manufacture the product at its plants.

Inorganic growth: Dr Sharma said the company, which had been growing organically, would now sharpen its focus on inorganic growth. Lupin, which has a wide array of drugs covering anti-infection, cardio-vascular, diabetes and CNS segments in its portfolio, will also be looking at adding more therapeutic drugs in its basket. "The accent will be on life-style diseases. The changing lifestyles have been altering the health needs of people and this is an area which will be our focus now," he said.

Lupin sees interesting possibilities in the Indian clinical trials market. "This market is growing and we are exploring the possibility of Lupin playing a bigger role in this market through tie-ups or alliances with overseas companies," he said.

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