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| Edited By: Reghu Balakrishnan |Source: |Updated: Sep 14, 2017, 04:15 PM IST
MUMBAI: Zydus Cadila has acquired 97.5% stake in Liva Healthcare, a mid-sized company with a derma focused product portfolio, for an undisclosed sum.
The size of the deal is not known but sources said the all-cash transaction will be funded through cash accruals and debt.
The buy is aimed at boosting the company’s presence in the Rs 1500 crore dermatology drug segment in the country. Liva Healthcare was earlier known as Camlin Pharma.
The market for dermatology, the 7th largest therapeutic segment in India, has grown at CAGR of 14.1% over the past three years (IMS ORG MAT Dec 2006). Eleven of the 15 sub-therapeutic areas, constituting 76% of the derma market, are registering double-digit growth.
In 2006, Camlin Ltd hived off its loss-making pharmaceutical division to form the new company, Liva Healthcare Ltd. The division contributed Rs 240 million to the topline and a loss of Rs 54 million in FY05. This has fallen to Rs 6 million in topline and loss of Rs 30 million in FY06.
According to Cadila officials, Liva is likely to post sales in excess of Rs 37 crore in 2006-07.
Pankaj R Patel, chairman and managing director, Zydus Cadila, said: “This acquisition unlocks great value for the group as it enables us to extend our expertise in a new therapy segment and cater to the needs of this segment. We see this as an opportunity to fortify our presence in the Indian pharma market and lead by extending our reach.”
Derma products constitute 56% of Liva’s therapeutic coverage. Liva also has a strong presence in the respiratory segment which accounts for 24% of its TA coverage. Top five brands of the company —- Fusys, Nasoclear, Oflatoon, Clobetasole combinations and BTN — contribute over 63% of Liva’s sales. The acquisition also includes Liva’s GMP compliant manufacturing facility at Sinnar, near Nasik.
