Glenmark Acquires Czech Drugmaker

Glenmark, a wholly owned Swiss subsidiary of India-based Glenmark Pharmaceuticals, has agreed to acquire a majority share of the Czech firm Medicamenta.

Under Czech law, a holding of more than 90 percent of shares of the company triggers a mandatory takeover bid for the remaining shares of Medicamenta, which has sales and marketing operations in the Czech Republic and Slovakia.

The pharmaceutical market in the Czech Republic and Slovakia is dominated by branded generics. Glenmark plans to develop and expand Medicamenta's current portfolio of pharmaceutical products. Medicamenta's leading product, Ataralgin, is for the treating aches and pain.

Medicamenta's projected revenues for 2007 are $8 million. The company has a plant in Vysoke Myto, Czech Republic. Glenmark plans to use the facility to support manufacturing, packaging, quality release and warehousing for its European business.

"This is the first of many steps that Glenmark will take on its journey to build a significant branded presence in the important market of Europe, and Medicamenta will also provide a geographically central base to support Glenmark's other European distribution activities," Guy Clark, president of Glenmark Europe, said.