Zydus Cadila in talks to acquire Biochem Pharmaceuticals’ brands and facility

Zydus Cadila is in talks with Biochem Pharmaceuticals to acquire the brands and manufacturing facility of the latter. The deal is expected to be valued at around Rs 300-450 crore and will boost Biochem's revenue growth. Zydus Cadila has been on the hunt for companies that are small in size and have specific product pipelines.

Biochem makes popular antibiotics such as Amicin or amikasin, which is used for dermatological treatment. Its other big brands include Ampilox and Biotax, commonly used as anti-infectives. These three drugs contribute close to 50% of the company's revenues. It also has a small portfolio of oncology products. Biochem reported revenues of Rs 241 crore in fiscal 2009-10 and the company exports products to eight countries.

Cadila Pharmaceuticals focuses on various areas, such as formulations (human and veterinary), new drug discovery, novel drug delivery, pharmaceutical ingredients, analytical research, phytochemistry, biotechnology, plant tissue culture, etc.