‘Pharma companies in India zoom in on Brazil market’
EPP News Bureau – Mumbai
Brazil’s $ eight billion pharmaceutical market is a hot destination for Indian companies owing to its high price structure and dearth of domestic companies. Strides Arcolab, which is planning a merger with Matrix Laboratories, has emerged the number one Indian player in this market with a market share of $48 million, with majors like Ranbaxy and Torrent in tow, said the company’s managing director Arun Kumar at the company’s AGM here on Wednesday.
Speaking on the merger, Kumar said that the new company, Matrix Strides Ltd, will be 100 per cent export-oriented, but may examine an Indian acquisition to sell products in India in the future. The proposed merger will make the combined entity a fully integrated company with capabilities in both raw materials and finished goods.
The new entity will have revenues of Rs 2,500 crore, making it the fifth largest pharma company in India after Ranbaxy, Sun, Cipla and Dr Reddy’s Laboratories. The merged entity will also be the fourth largest manufacturer of AIDS drugs in the country, alongwith Cipla, Ranbaxy and Aurobindo Pharma.
Although AIDS drugs form only 5 % of Matrix and Strides combined revenue, it is expected to go up in the near future.