Ahmedabad-based Zydus Cadila, India's fourth largest pharma company with a turnover of Rs 2,300 crore, has acquired 100 per cent stake in Laboratorios Combix of Spain, marking its entry into Europe's fifth largest pharmaceutical market. The company bought the Spanish firm for an undisclosed amount.

Laboratorios Combix, which primarily focuses on generics, provides the right fit for Zydus' strategy for entry into a market that is estimated at $1.7 billion. In 2007, the Spanish pharma market grew 21.5 per cent, compared to 6 per cent for the overall pharmaceutical market.

Established in 2006, Combix has a solid portfolio covering 17 molecules.

Additionally, it has a range of products that are either awaiting launch or in the pipeline. The acquisition allows Zydus to jumpstart its business and leverage strengths in product development, a high quality, cost-competitive supply chain and operational efficiency, said a company release.

Having entered the French generics market in 2003, an entry into Spain forms a critical part of Zydus' European expansion strategy, which looks at markets with low generic penetration, thereby providing ample opportunities for growth, said the release.

Sidestepping the more time consuming, greenfield strategy to enter newer markets, Zydus has been expanding its operations globally through strategic acquisitions.

Starting with Alpharma France in 2003, the group went on to acquire Nippon Universal Pharmaceuticals of Japan and Quimica e Farmaceutica Nikkho do Brasil of Brazil in 2007.

With operations in the US, Europe, Japan, Latin America, Asia Pacific and Africa, the group's formulation exports grew by 72 per cent in 2007-08.