Tuesday, August 26, 2008


Fresenius Kabi - Dabur Pharma deal

Financial Express

Dabur Pharma, an associate company of Dabur India Ltd, on Saturday said its promoters and other shareholders have agreed to sell 73.27% in the company to Fresenius Kabi (Singapore) Pte Ltd, at Rs 76.50 a share. The Singapore firm is a unit of European healthcare firm Fresenius SE.

Dabur Pharma, which makes anti-cancer drugs, had earlier this year denied that it was in talks with a German drug maker for a partnership or sale. The deal with Fresenius values it about 10% higher from its market capitalisation of $273 million.

Last year, Dabur Pharma had sold its non-oncology drugs business to local rival Alembic to focus on cancer treatment drugs. Founded in March 2003, Dabur Pharma operates in Europe and some other markets through its fully owned subsidiary, Dabur Oncology Plc.

The fully integrated pharmaceutical business of Dabur Pharma covers the oral and injectable finished dosage forms and active pharmaceutical ingredients and intermediates. The company has its manufacturing units for finished dosage forms in Bordon (UK) and Baddi (India), while the active pharmaceutical ingredients (APIs) are manufactured in Kalyani (India) and some products come from Dabur India`s Sahibabad facilities.

Fresenius SE is a global health care group, based in Germany, with products and services for dialysis, the hospital and the medical care of patients at home. The Fresenius Group consists of four business segments that are responsible for their own business operations worldwide—Fresenius Medical Care, Fresenius Kabi, Fresenius Helios and Fresenius Vamed.

Leadership changes mady by Fresenius Kabi post the deal with Dabur Pharma:

Unlike the Daiichi Sankyo-Ranbaxy deal, after which Malvinder Singh stayed on as managing director and CEO of Ranbaxy, Germany’s Fresenius Kabi has moved differently. After acquiring Delhi-based Dabur Pharma, Fresenius Kabi has brought in Satish B. Kulkarni as CEO of the new Indian subsidiary, replacing Ajay Vij.

Ulf Mark Schneider, president and CEO of Fresenius said, "We had agreed with Dabur prior to the deal that we would let Mr Vij go, as Dabur (FMCG major Dabur India, the erstwhile parent of Dabur Pharma) wanted to retain him."

Kulkarni worked for a while in India, first with Ahmedabad-based Core Pharmaceuticals and then with Fresenius Kabi. In 2001, he set up the company’s Asia-Pacific headquarters in Hong Kong. "It is also less risky for us to appoint someone who is already working for us," says Schneider.

In another change, Rakesh Bhargava, managing director and CEO of Frenesius Kabi India, will be chairman of Dabur Pharma. Joining the new board will be Dr Naresh Trehan, Indian Pharmaceutical Alliance’s Dilip Shah, and Dabur India’s Chairman Anand Burman.

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