India's Torrent Pharmaceuticals said it has bought all of family-run Zyg Pharma in a deal that gives it access to a new product line in dermatology and a manufacturing facility approved by the U.S. FDA and the Therapeutic Goods Administration in Australia.
Indore, India-based Zyg was run by the Merchant family and will join a company that in 2013 moved to buy the struggling domestic business of Elder Pharmaceuticals for $321.7 million for 30 Indian brands spanning treatment categories that include women's healthcare, pain management, wound care and nutraceuticals.
Torrent has also launched several generics at home and abroad to boost growth as rivals also seek alliances at home and abroad, including last year's blockbuster combination of Sun Pharmaceuticals and Ranbaxy Laboratories.
As well, Sun Pharmaceutical, Glenmark Pharmaceuticals and Intas Pharmaceuticals, all India-based, are getting a collective investment infusion of $567.7 million--all from Singapore's government.
Temasek Holdings, Singapore's state-owned investment firm, said that for the past 6 months, it or its units had invested that amount in the three drugmakers because they have provided the best returns over the past few years.
Separately, Sun Pharmaceuticals has a ready war chest to look at home and abroad as it seeks to expand sales options.
Zyg is a good fit with Torrent domestically because of its position in the niche dermatological segment--especially in the developed markets like U.S. and Europe.
Torrent did not disclose the acquisition price and said it would fund the purchase through internal accruals. It is expected to close by August 2015.
- here's the release