Sun Pharmaceutical Industries Ltd has agreed to acquire an 85.1% stake in Russian drugmaker JSC Biosintez as part of its strategy to expand in emerging markets.
Key reason for this deal –
1. Russia is the emerging pharma market and with this strategic expansion, Sun Pharma will have local manufacturing capability across multiple dosage forms in Russia.
2. Biosintez makes a wide variety of dosage forms including pharmaceuticals for injections, blood substitutes, blood preservatives, ampoules, tablets, ointment, creams, gels, suppositories and bulk drugs.
3. Biosintez makes and sells pharmaceutical products in Russia and former Soviet republics. It focuses on the hospital segment and reported annual revenue of about $52 million for 2015.
4. US market is under constrain due to regulatory hurdles for most Indian companies. So, all companies are looking for alternative markets to keep bottomline intact. Pharma emerging market are major expansion destination in recent times in pharmaceutical industry.