Ranbaxy on an acquisition growth strategy in EU?

Ranbaxy (India's largest pharmaceutical company and top 10 generic company in the world) has announced its 3rd acquisition this week.

1. Terapia, Romania.
2. Ethimed NV, Belgium.
3. Allen S.p.A , Italy.

It would seem that they are trying to rapidly expand capacity in the European Union and to penetrate the rapidly growing generic segment of all 3 countries. Generic market share in Romania, Belgium and Italy in terms of % (value) are 66.1, 6.1 and 2.05 respectively in 2004. (Source:http://www.egagenerics.com/gen-geneurope.htm)

Hence growth potential reflects an upside momentum for the Belgium and Italian market while the acquisition in Romania may be strategic in nature to increase manufacturing capacity to serve the growth the of the EU's generic market.

Overview and trends

World

1. Oncology drugs > Cholesterol Lowering Drugs in terms of sales. In the areas of oncology, BMS are the traditional leaders with Roche having a strong pipeline.
2. Biologic Rx are growing and small chemical entities Rx are decreasing.
3. With Harmonization; simultaneous launches of Rxis possible and this translates into cutting down on regulatory approval time; meaning patent period is longer which translates into greater profits
4. Manufacturing is moving from batch processing into continuous processing; however this is in its infantile stage.