Drug firm Lupin on Thursday announced the acquisition of Russia's Biocom, marking its foray into the market which is expected to be one of the top eight pharmaceutical markets in the world by 2018.
The company has acquired 100 per cent equity stake in ZAO Biocom in Russia subject to certain closing conditions, Lupin Ltd said in a statement without disclosing the financial details.
The acquisition marks Mumbai-based firm's entry into the Russian pharmaceutical market which recorded RUB 765 billion in sales, placing it as one of the top ten markets in the world in 2014, it added.
Commenting on the acquisition, Lupin Chief Executive Officer, Vinita Gupta, said: "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."
As per the IMS sales data, for over a decade Russian pharmaceutical market has recorded double digit growth and expected to continue with this trend, projecting Russia to be one of the top 8 pharmaceutical markets in the world by 2018.
Established in 1991, Biocom is a generic pharma company with focus on therapies such as cardiovascular, central nervous system and antimicrobials and also does contract manufacturing and secondary packaging.
Biocom recorded sales of RUB 861.2 million in financial year 2014 and has 118 employees.
It 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 (WHO) in 2013.
Biocom's executive officer Aleksandr Sergeyev said: "I am delighted with Biocom's association with Lupin...I firmly believe that the future and growth of Biocom would be best handled by the management and technology expertise that Lupin brings to table."
Earlier in May, Lupin had announced the acquisition of Brazil's Medquimica Industria Farmaceutica SA, marking its entry into the high growth Latin American nation.
Lupin shares ended at Rs 1,869.70 apiece on the BSE, down 0.43 per cent from the previous close.