Lupin buys Russia-based Biocom

In its second acquisition in less than two months, drugmaker Lupin Ltd said it has acquired 100 per cent stake in Russia’s ZAO Biocom for an undisclosed sum. The transaction marks its entry into the RUB 765 billion Russian market.

In May, Lupin had acquired 100 per cent of Brazil’s Medquímica Indústria Farmacêutica. More recently, the company’s board cleared an enabling resolution to raise Rs.7,500 crore, possibly towards funding acquisitions. Nilesh Gupta, Managing Director, Lupin, had told BusinessLine in a recent interview that the spotlight was clearly on an acquisition this year. It could be of speciality products or companies in the US or Europe, he said.

He had also indicated that Lupin would look at the acquisition of companies as a strategy to gain entry into markets where it did not have a presence, like Brazil or Russia.

The latest acquisition Biocom, established in 1991, is a generic drugmaker focused on cardiovascular, central nervous system and antimicrobials, as well as undertaking contract manufacturing and secondary packaging.

The company recorded sales of RUB 861.2 million in the financial year of 2014 and has 118 employees, Lupin said.

Biocom also operates a modern European GMP compliant plant and was also one of the first Russian pharmaceutical manufacturing companies to receive an approved manufacturer status from the World Health Organisation in 2013, the note added.