Nicholas Piramal has acquired India rights for three anti-infective and one anti-viral brand from the Eli Lilly Ranbaxy joint venture. The three anti-infective brands, Mucokef, Zidime and Keroxime belong to Eli Lilly while the anti-viral brand Lovir belongs to Ranbaxy. The deal is expected to have cost Rs 100 m.
Nicholas Piramal Limited is one of the largest pharmaceutical companies in India, commanding a combined market share of 5%. The company has a strong presence in anti-bacterial, cardiovascular, opthalmics, vitamins, biotek and antacids. It is the only Indian firm that is a part of the Massachusetts Institute of Technology's industrial liaison programme.
With the acquisition of these brands the company has made an entry into this specific generation of antibiotics, according to its Chairman. The company plans to nurture these brands. Currently, none of these brands have a significant presence in the segments they are in.
The decision to acquire brands as against develop them will help Nicholas Piramal in ramping up its growth rate much faster than in the other scenario. It will also enable the company in offering a larger range of brands in a wider category. Moreover, in this strategy the risk associated with the failure of research is not present.
The company is simultaneously pursuing a strategy of developing products in house by stepping up its research and development (R&D) activities. This will ensure that even though the company from time to time may acquire brands to generate growth, organic growth too will keep pace. Internal R&D will make the company more self-sufficient, reducing dependence on the availability of brands and products in the market.
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