Plethico Pharma to Take Over 20% stake in Tricon Holdings arm for $20 mn

A global pharma company with a strong emphasis on herbal and neutralceutical segments, Plethico Pharmaceuticals Ltd, is all set to acquire 20% stake in the Sputnik Regional Aptika Holdings Ltd, a drug retailer in the Commonwealth of Independent States, or CIS, from Hong Kong-based Tricon Holdings Ltd for $20 million (Rs100 crore).

A long-term manufacturing contract is also part of the deal. Plethico chief financial officer Sanjai Pai said, "With this Deal, we also anticipate a long-term manufacturing contract from Tricon, especially in the pharmaceutical formulations where we have extra capacity in our Indian manufacturing plants."

Sputnik has 300 retail outlets in the CIS and generated revenues of about $120 million in 2007. Plethico hopes to have revenues of Rs1, 000 crore by 2010.

Chirag Patel, CEO and director of Plethico Pharma stated, "This acquisition would help Plethico to consolidate its position in the CIS market. CIS is largely a credit hungry market and the only real cash business in CIS is retail pharmacy and hence our long standing desire of owning a share in CIS retail pharmacy has been fulfilled."

Plethico expects the CIS region to be a major contributor to its revenues, as it estimates the drugs and lifestyle products market in the region to grow at 30-32%.