Tuesday, August 28, 2007

Elder Pharma buys 51 pc in Bulgarian firm

Elder Pharmaceuticals Ltd said on Tuesday it had acquired 51 per cent stake in Bulgaria's Biomeda group for 5 million euros ($6.82 million) in an all-cash deal to help widen its presence in Europe.

Biomeda makes oral drugs and turns in an annual revenue of 10-12 million euros, Elder said in a statement. "Elder got attracted to (the) Bulgarian market for skilled labour, which has an advantage in terms of lower labour cost compared to other European countries," said Alok Saxena, Elder's director (international).

"Bulgaria, by virtue of its strategic location, is a natural gateway to the larger markets of CIS, Asia and North Africa." Biomeda is Elder's second European acquisition following closely on the heels of its announcement, in July, to acquire a 20 percent stake in UKs NeutraHealth Plc.

(Source: Economic Times)

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