Biocon to acquire German firm

Biocon is set to acquire a majority stake in a German pharma company, AxiCorp.

According to the Chairman and Managing Director of Biocon, Kiran Mazumdar Shaw, the deal is likely to be sealed by the end of this month.

Giving details of the acquisition at a press conference here on Tuesday, Ms. Shaw said that Biocon would acquire a 70 per cent controlling stake in AxiCorp for a consideration of €30 million (about Rs. 177.75 crore). “This will enable the marketing and distribution of a range of pharmaceuticals, including generics, biosimilars, biologicals and innovative pharmaceuticals, in Germany and Europe,” she said.

AxiCorp has a market share of 7 per cent in the range of products it manufactures in the European pharma market. Ms. Shaw said the “acquisition was good value for us”.

Outlining the financial results for 2007-08, Ms. Shaw said the company had posted Rs. 225 crore as profit (before exceptional items) compared to Rs. 200 crore in 2006-07, registering a growth of 13 per cent. The company’s revenues rose 10 per cent, from Rs. 990 crore to Rs. 1,090 crore. She said the “profit growth has been maintained despite the divestment of the enzymes business and currency appreciation”. The net profit zoomed from Rs. 200 crore to Rs. 464 crore.