Sharemasterindia.com: Lupin shares gained as much as 2.5 per cent to hit intraday high of Rs
1,917 on Friday after the company said on Thursday that it has acquired
100 per cent equity in Russian pharmaceutical company ZAO "Biocom" for
an undisclosed amount, making its foray into the rapidly growing Russian
pharmaceutical market.
The acquisition of Biocom marks Lupin's foray into the Russian pharmaceutical market which recorded 765 billion rubles in sales, placing it as one of the top 10 pharmaceutical markets in the world in 2014, Lupin said in a release to Bombay Stock Exchange.
The Russian pharmaceutical market has recorded double digit growth for over a decade and is expected to continue with this trend, as per the IMS Health report.
Biocom was established in 1991 and is focused on therapies such as cardiovascular, central nervous system and antimicrobials for systemic use and also does contract manufacturing and secondary packaging. Biocom recorded sales of $23 million in financial year 2014 and has 118 employees.
Analysts say Lupin can build upon small base of Biocom and can use its trade channels to cross sales its products thereby generating higher revenues.
"We are excited about our entry into the Russian market through Biocom. Russia is an attractive market and this acquisition will also enable our expansion into neighbouring markets as well as other Eastern European markets in the future," said Vinita Gupta, chief executive officer of Lupin in a release to BSE.
As of 9.36 a.m. Lupin shares traded 2.34 per cent higher at Rs 1,914 apiece, outperforming the broader Nifty, which was up 0.48 per cent.
The acquisition of Biocom marks Lupin's foray into the Russian pharmaceutical market which recorded 765 billion rubles in sales, placing it as one of the top 10 pharmaceutical markets in the world in 2014, Lupin said in a release to Bombay Stock Exchange.
The Russian pharmaceutical market has recorded double digit growth for over a decade and is expected to continue with this trend, as per the IMS Health report.
Biocom was established in 1991 and is focused on therapies such as cardiovascular, central nervous system and antimicrobials for systemic use and also does contract manufacturing and secondary packaging. Biocom recorded sales of $23 million in financial year 2014 and has 118 employees.
Analysts say Lupin can build upon small base of Biocom and can use its trade channels to cross sales its products thereby generating higher revenues.
"We are excited about our entry into the Russian market through Biocom. Russia is an attractive market and this acquisition will also enable our expansion into neighbouring markets as well as other Eastern European markets in the future," said Vinita Gupta, chief executive officer of Lupin in a release to BSE.
As of 9.36 a.m. Lupin shares traded 2.34 per cent higher at Rs 1,914 apiece, outperforming the broader Nifty, which was up 0.48 per cent.
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