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Tuesday, February 05, 2008

Plethico Pharma looking at overseas OTC buyouts

After acquiring neutraceutical company Natrol in the US, Mumbai-based Plethico Pharmaceuticals is pursuing three more acquisitions in the over-the-counter (OTC) and functional food space overseas.

Sanjay Pai, chief financial officer at Plethico Pharma Ltd, told DNA Money: “We are looking at opportunities in the US, UK and Brazil. These acquisitions will be in the area that can complement our existing business.”

Last month, the Mumbai-based drugmaker acquired Natrol for $80.7 million. On account of this acquisition, Plethico added 200 products (with 500 line extensions) to its existing portfolio. Prior to the buyout, Natrol was listed on Nasdaq stock exchange.

A person close to the company said that Plethico wants to list the company again on the US stock exchange. “Hence the company is looking at acquisition in the region. It wants the business to be at least $250-$300 million in revenues before it proceeds for listing,” the source added.

According to investment banking sources, Plethico had also bid for UK-based Galpharm Healthcare Ltd that has a big portfolio of OTC drugs. But another US-based company Perrigo Co bagged Galpharm for $86 million this month.

Pai refused to comment on both the developments. “Currently, we are in process of integrating Natrol with our Indian operations,” he said. Plethico is evaluating the product basket of Natrol. The US-based neutraceutical company sells in about 40 countries.

Plethico will achieve Rs1,000 crore in revenues by the year-end thanks to the recent US acquisition, Pai said.

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