In line with its strategy to grow inorganically, Torrent Pharmaceuticals Ltd is close to sealing a deal to acquire the dermatology venture of Mumbai based Encore group.
Pharma major Torrent Pharmaceuticals Limited is close to seal the deal to acquire dermatology business of Mumbai-headquartered Encore group for Rs 350 crore.
Promoted by Merchant family, Encore Group is engaged into specialty pharmaceutical business for over 50 years. The group's derma division has combinations and formulations in categories as topical steroids, skin cleaning lotions, moisturising creams amongst others.
While both the company’s official spokesperson were unavailable to comment on the deal, leading business daily The Economic Times informed that Torrent Pharma rallied as much as 5 per cent in the trade early in the day, after the news acquisition news being circulated by the media.
Analysts say that the acquisition of derma business makes sense as Torrent has little presence in dermatology space. In fact, Torrent itself saw a huge growth in derma business among others.
Reportedly, in its annual report for 2013-14 earlier, The Company had said, "The cardiac, CNS, anti-diabetic, dermatology markets have been growing much higher than the Indian pharma market among the major therapies in the past one year.”
The company also envisaged investments in dermatology and oncology segment.
After acquiring Elder Pharma in early 2014, Torrent Pharma showed keenness to make more acquisitions for growth.
Significantly, the acquisition of derma business of Encore group provides Torrent Pharma access to global market also as the former has approvals to export its products to US and Australia and has presence in countries like Canada, China, Vietnam, Nepal, Thailand and Vietnam, to name a few.