Aurobindo’s Dutch buyout likely today

HYDERABAD: Aurobindo Pharma is all set to announce the acquisition of a formulations company in The Netherlands that will speed up the company’s European strategy.

“While the board of directors has already approved the proposal and the deal will be announced on Friday subject to finalisation of the price,” industry sources told DNA Money.

DNA Money tried to contact Srinivas Lanka, director, Aurobindo, for a reaction but he was not available for comment. Expected to be upwards of $20 million this will be the second European acquisition by the bulk drugs major after the acquisition of MilPharm in February this year.

The company being acquired has several marketing authorisations and will enable Aurobindo to expand in the market much faster apart from getting clearances for rest of Europe much faster.

MilPharm, which had sales of 7.7 million pounds in 2005, was useful in front ending the company’s foray into the UK generics market where margins are much higher than in the US.

The acquired company had rights to 103 third-party products which were transferred to Aurobindo.