ASIA FOCUS : PHARMACEUTICALS / INDIAN FIRM EXPANDS

Dabur acquires oncology unit from Biosciences in Thailand

SUDIPT ARORA

New Delhi - India's Dabur Pharma Ltd has acquired the entire oncology (anti-cancer) sales and distribution business from its longtime partner Biosciences Company Ltd in Thailand.

The acquisition, for an undisclosed sum, is part of the company's plan to increase its hold on the oncology market.

Dabur Pharma has also announced the sale of its entire domestic non-oncology formulation business to Vadodara-based Alembic for 1.59 billion rupees (1.29 billion baht), plus the actual net working capital on the closing date. The non-oncology formulation business mainly comprises high-growth lifestyle segments such as cardiovascular, diabetic and gastrointestinal, gynaecology and other areas.

Dabur Pharma is now looking for more oncology acquisitions in Europe, the United States and less regulated markets such as Brazil and Russia. "We are also looking at strengthening our presence in markets such as Philippines and Malaysia," said chief operating officer Ajay Vij.

The company wants a presence in China as well, he added. The Thai acquisition, completed through its wholly owned subsidiary in the country, greatly strengthens Dabur's presence in the Thai oncology generics market, where it is already the leader. It also gives Dabur Pharma access to all of Thailand's cancer hospitals.

The deal was funded from internal accruals. The marketing network of Biosciences will now be completely utilised to promote Dabur's oncology products.

Dabur, a market leader in generic oncology drugs, has about 30 cancer medicines in the Thai market.

"The oncology market in Thailand is estimated to be growing at the rate of 25% [a year]," said Mr Vij. "Dabur, which entered the market in 1999, is currently growing at 29% and has a market share of approximately 17% among the generic companies."

Biosciences primarily handles Dabur's business in Thailand as 90% of its products come from the India-based firm.

Bangkok Post
Sunday February 11, 2007