Lupin On Its Way To Acquire Medisol ; Agreement To Pay 18 Million Euros!

Lupin Atlantis Holding SA, a Lupin Ltd. subsidiary based in Switzerland, stated on May 5 2023 that it has bought the French pharmaceutical company Medisol Lifescience Pvt.
To purchase the entire share capital, the firm has agreed to pay a cash consideration of 18 million euros which is about Rs 160 crore, out of which 14.5 million euros are an upfront payment and the remaining 3.5 million euros are earn-outs.

The agreement is planned to be finished by July 2023, subject to the French ministry’s necessary permission. Medisol, a generic injectables specialist with its headquarters in Lyon, was established in 2011 and is currently working to develop and market its medicines in France’s pharmacies and hospitals. Lupin will get a firm foothold in the French market as a result of the Medisol acquisition, and it will also be able to use Medisol’s extensive distribution network to grow its footprint throughout Europe.

As part of the agreement, Lupin will purchase Medisol’s central France-based production facility, which has a 300 million tablet annual production capacity. By doing this, it will be able to increase its manufacturing capacity in Europe and improve its capacity to offer patients in the area high-quality, reasonably priced generic medications.

The seven injectable medications in Medisol’s portfolio, which cover four therapeutic areas—pain management, anti-inflammatory, cardiovascular disorders, and obstetrics—will be made available to Lupin as a result of this transaction. According to the filing, the takeover has this synergy with Lupin’s injectables portfolio along with other products.

This purchase is a component of the firm’s plan to strengthen its position in the EU and develop an injectables business in France. According to the firm, France is the second-largest injectables market in Europe and is experiencing strong growth. Around 7.3 million euros in revenue were generated by Medisol in FY22, 7.1 million euros in FY21, and 5.3 million euros in FY20. Before the acquisition’s announcement, Lupin shares closed 0.78% lower on Friday, while the benchmark Sensex fell 1.13%.

Subject to regulatory approvals, the acquisition of Medisol is anticipated to be finished by the end of this year. Lupin has been on an acquisition binge recently, buying several businesses in the US and Europe. One of its largest acquisitions, Gavis Pharmaceuticals LLC in the US in 2015, allowed the company to increase its market share in the US generics industry.

Why Medisol?
Nilesh Gupta, managing director of Lupin, said that the purchase of Medisol represents an important milestone in Lupin’s strategy for worldwide expansion. Mr. Gupta emphasized that this acquisition will further boost Lupin’s long-standing commitment to providing accessible and inexpensive healthcare solutions.

According to the managing director they are dedicated to growing the company’s global presence and giving patients all across the world access to high-quality, affordable medicines. They look forward to cooperating closely with Medisol’s skilled staff to accomplish the shared objectives and believe that the acquisition of Medisol is an important step in that direction

Subject to regulatory approvals, the acquisition of Medisol is anticipated to be finished by the end of 2023. The management team of Lupin has expressed confidence that the transaction would be a success and that it will provide the company with considerable long-term benefits.

The company made a key decision by purchasing Medisol since it will enable it to grow in Europe and solidify its position in the world pharmaceutical industry. The agreement demonstrates Lupin’s dedication to offering accessible and inexpensive healthcare options to patients all across the world.

Conclusion
Lupin’s purchase of Medisol is a wise strategic move that will enable the business to broaden its product offering and enhance its production capabilities in the important growth markets of inhalation and injectable medicines. The acquisition is anticipated to increase Lupin’s pharmaceutical business globally and strengthen its position in the European market.

Proofread, Edited & Published By Naveenika Chauhan