Matrix to buy Latin American firm for $60 mn

Hyderabad-based Matrix Laboratories Ltd is close to acquiring a Latin American contract research firm for $60 million.

The company, which made the biggest ever acquisition in the Indian pharma history last year by taking over controlling stakes in DocPharma in Belgium, has finalised the Latin American deal and an announcement would be made soon, market sources said.

On January 30 this year, Matrix had decided to raise $200 million via GDR, ADR, FCCB or shares on preferential basis, or a combination of both.

"Part of this amount will be used for the acquisition," sources said.

The rest of the amount would be utilised for the repayment of its term loan.

Matrix Laboratories Ltd is engaged in the manufacture of active pharmaceutical ingredients and solid oral dosage forms. The company has over 2,000 employees, including 200 research and development scientists.

The promoters of the company holds 63.84 per cent, while mutual funds, banks and Foreign Institutional investors hold 15.98 per cent, while public and others holds the rest.

The company posted a quantum jump in net profit for the third quarter ended December 31, 2005 at Rs 95.8 crore (Rs 958 million) as against Rs 25.55 crore (Rs 255.5 million) an year ago with sales stood Rs 198.61 crore (Rs 1.986 billion) during the current year compared to Rs 166.07 crore (Rs 1.66 billion) during the third quarter of last year.