UT-based pharma firm buys US brand for $22mn

CHANDIGARH: City-based SuryaPharmaceuticals, with net revenue of Rs 1,144 crore in financial year 2009-10,has acquired US-based over-the-counter (OTC) analgesic drug brand ActivOn, alongwith its global marketing rights for $22 million. The ActivOn brand comes to Surya's kitty with the acquisition of Ameshire Investment Corp through its wholly-owned subsidiary Surya Pharmaceutical (Singapore). The company will fund the acquisition through a mix of internal accrual and debt financing from Exim Bank, it said in a filing to the BSE. Surya Pharma CEO Hariom Bhatia said, "The main benefits of this acquisition, are the existing brands, existing business and established profitability. However, at the same time through this acquisition, we get access to the leading retailers in US like Wal-Mart, Walgreen, CVS and RiteAid etc. This gives us an opportunity to launch some of our own OTC and FMCG products in future through those shelf spaces." He was hopeful of introducing the range of products under Surya's label within a year.Bhatia said in the last fiscal, ActivOn — used to treataches and pains — achieved total top line of USD 8.5 million with anEBITDA of almost 32%, this is expected to grow up to USD 18 to 20 million incoming financial year. The whole profit is expected to come in to the kitty ofSurya Pharma.Talking about the benefits of deal, he said, "Inanother six months, we will be able to achieve topline of about USD 5-6 million,but next year, ActivOn alone is going to contribute more than USD 20 millionbecause besides the growth in US, we will also launch this product in India andother markets as well."