Lupin Acquires Mexican Opthalmic Drug Producer Laboratorios Grin

Drug maker Lupin has acquired Mexican ophthalmic drug maker Laboratorios Grin. The Indian- based firm released a statement last week indicating that the acquisition had been completed for an undisclosed sum.

Industry experts believe that Lupin's acquisition of Laboratorios Grin indicates the Indian-based company is looking to be a real presence in the Latin American market. Mexico is considered a high growth pharmaceutical market, and it carries a total market worth of $13.5 billion. Lupin claims that the country's market worth number is growing at a rate of 9-10 percent each year.

Laboratorios Grin is currently the fourth largest ophthalmic pharmaceutical company in Mexico. In 2013, the company garnered $28 million in sales. Currently, Laboratorios Grin has 275 employees and has a sales division, as well as a manufacturing and research division in Mexico City. The company provides pharmaceutical products to at least 10 countries, all located in Latin America.

Hitesh Mahida, an industry analyst working for KR Choksey Shares and Securities, believes that the deal is a good one for Lupin. “Lupin’s management has not disclosed the transaction details, but its acquisition history suggests it could be in the range of $25-30 million,” said Mahida. “We believe that this acquisition should not put any strain on the balance sheet since the company will be debt free in fiscal 2014. Lupin’s management indicated that Grin (the acquired company) is a profitable company.”