Zydus Cadila acquires Liva Healthcare

Ahmedabad: Ahmedabad-based pharma company, Zydus Cadila has picked up a 97.5-per cent stake in Liva Healthcare and will fund the all-cash transaction through cash accruals and debt. With this acquisition, Zydus expects to establish its presence in the Rs 1,500-crore derma segment, the seventh largest therapeutic segment in the Indian pharma market.

The market for dermatology products has grown at CAGR of 14.1 per cent over the last three years. Zydus domestic formulation business contributes to over 50 per cent of the group's turnover with as many as 17 brands among the top 300 pharma brands in India. In the participated segments, the group is a leader in the cardiovascular, gastrointestinal, women's healthcare segments and has a strong presence in the respiratory, pain management and anti-infective segments.

Liva Healthcare has registered a more than 15 per cent growth rate as per IMS (June 2006). It is a profit making company and it is likely to post sales in excess of Rs 37 crore in 2006-07.

Derma products constitute 56 per cent of Liva's therapeutic coverage and it also has a strong presence in the respiratory segment which accounts for 24 per cent of its TA coverage.

Top five brands of the company include — Fusys, Nasoclear, Oflatoon, Clobetasole combinations and BTN which contribute over 63 per cent of its sales.