Mumbai-based pharmaceutical firm Lupin Limited has acquired a majority stake in South African company Pharma Dynamics, the largest privately-owned generics pharmaceutical company. Lupin is reported to have paid $25 million for its acquisition.

Cape town-based Pharma Dynamics, ranked No 6 amongst generic companies,  is amongst the fastest growing generic companies and has been consistently rated as the fastest growing generic company in South Africa over the past five years, during which period it has built marketing alliances, distribution agreements and contract manufacturing arrangements with several multinational companies.

Its brands command a premium image with the medical profession with leadership in the cardiovascu1ar segment, which accounts for nearly 50 per cent of all chronic medication consumed in South Africa.

"With the synergies of the two companies, we expect to be in the top league in the South African market very soon," said Lupin's managing director Dr Kamal Sharma. "We are extremely excited with this entry into this significant geography and are pleased that  Paul Anley will continue to lead the company."

The equity participation by Lupin will strengthen Pharma Dynamics' position as the backward integration capabilities of Lupin will assist it with patent issues, regular and reliable supplies and overall process control. The dedicated global business development department will ensure continual exposure to international companies and product opportunities.

Lupin is amongst the top five pharmaceutical companies of India,  and amongst the fastest growing with dedicated R&D facilities.

It is fully backward integrated and has a presence in several global markets. This strategic partnership will provide significant benefits for both parties.

Moreover, Pharma Dynamics will gain access to Lupin's existing product pipeline and manufacturing expertise, while Lupin will gain access to the established brands and supply chains in South Africa.

Anley, who founded the company in 2001, said that the partnership would be of considerable benefit to the South African firm's position in the generics industry loca1ly. ''The equity acquisition by Lupin gives us increased access to international research and development which will further strengthen our local position," he said.

"We look forward to leveraging and rapidly expanding our market share in the southern African markets," Anley added.

Over the previous year, the South African company recorded a 39 per cent growth in its generic portfolio. Its particular strength lies in the cardiovascular therapeutic area where it enjoys a leadership position in most of the molecular classes in which it operates. The company also has a strong and growing presence in the OTC market with both pharmaceutical and nutriceutical brands.

The South African company is currently growing at 34 per cent per annum as per IMS and has reported revenues of Rand 118 Mill for the year ended February 2008, in the $2.5-billion South African market, with generics accounting for a third of the market and growing rapidly, while Lupin reported PAT of Rs408 crore on revenues of Rs2,773 crore for the financial year ended March 2008.

Pharma Dynamics will launch at least 12 new products in the current yar, much higher than industry standards of about four new products per year. This pipeline will drive growth.

This is Lupin's third overseas acquisition, the others being the Australian generic pharmaceutical company Generic Health Pty Ltd (See: Lupin acquires stake in Australian pharma firm Generic Health) and with  German generics sales and marketing company Hormosan Pharma GmbH, (See : Lupin enter Europe with acquisition of German pharma marketing agency Hormosan)