The deal will combine the strengths of the two generics companies and will allow Ranbaxy to leverage its expanded base in the rapidly growing Romanian pharmaceutical market, across the European Union and the CIS markets.
“Terapia represents exceptional value for our stakeholders. Within the Ranbaxy fold, it unleashes multiple synergies of product development, product flow, low cost manufacturing, proximity and access to high growth markets, in-country presence and sound fundamentals, while being EPS (earnings per share) accretive to the group immediately,” commented Mr Malvinder Mohan Singh, CEO and managing director, Ranbaxy Laboratories
According to Ranbaxy, Romania is the fastest growing pharmaceutical market in the Central and Eastern European (CEE) region, with an approximate annual growth of 34% from 2002 to 2005 versus the growth of 24% for the region.