In a bid to tap the potential in Latin America, Glenmark Pharmaceuticals Ltd has acquired Brazil-based Laboratorios Klinger, ranked among the top 50 in that country, for $5.2 million.
"The Brazilian company was acquired through GPL's wholly owned subsidiary in Brazil -- Glenmark Farmaceutica Ltda -- and the transaction will be funded through a mix of debt and internal accruals," GPL managing director Glenn Saldanha told reporters in Mumbai on Friday.
The company has already established a strong presence in Russia while the current acquisition would bolster operations in Brazil too, he said.
Klinger, whose name would be retained, would be used as a vehicle to tap the Latin American market, which comprises Mexico and Argentina with market size of over $3 billion, he said.
Ruling out a merger between GFL and the Brazilian entity, he said the latter has 21 approved product registrations in the country and new products would be added gradually.
GFL CEO Ailton Wiliczinski said: "Utilising the combined strengths of GPL and Klinger, we are confident to grow revenues in excess of 25 per cent on an annual compounded rate in Brazilian market over the next three years."
Klinger, a privately held entity, had ended 2003 with revenue and profit of $5.5 million and $7,50,000, respectively. In 2004, the revenues are expected to rise to $7 million while profits would rise to $1 million, Saldanha said.
