Marksans Pharma acquires Hale Group

Marksans Pharma Ltd has informed that the Company's subsidiary, Marksans Pharma (UK) Ltd, has entered into a definitive agreement to acquire 100% of the share capital of Hale Group Ltd, the parent company of Bell, Sons & Co (Druggists) Ltd ("Bell"). Through this acquisition, the Company will have access to 34 product licenses of Bell, situated near Liverpool, in the UK.

Bell is a well established and highly reputed manufacturer and marketer of over the counter ("OTC") pharmaceuticals products, has full approval of the U.K. Medicines and Healthcare Products Regulatory Agency ("MHRA") and currently holds 34 approved product licenses. The Company manufactures licensed products born as own branded products and for certain customers. Customers include retailers in the OTC sector, pharmacies, chemists, wholesalers and cash and carry outlets. The Company is extremely well established in a number of export markets. The Company products take the form of non-sterile liquids, ointments and powders. The Company has a vast distribution network throughout the UK and overseas. The Company exports its products to over 20 countries and its exports revenue contributes one third of its total sales.

Bell is a stable and profitable OTC business, supported by decades of market experience and strong brand loyally.

Bell has a highly experienced management team with an average of 20 + years in the industry and 10 + years at Bell current management team to continue.

Bell is a profitable Company with high growth outlook and the same will be accretive to the Company's earning from the date of acquisition.

The acquisition of Bell will further increase the Company's revenue and earnings contribution from the regulated markets.

With the acquisition the Company's global revenues from the regulated market is expected to cross 50 % of its total revenue.

Bell is a zero debt company.

Mark Saldanha, Managing Director of the Company states "The acquisition is in line with the Company's global strategy. The Company plans to fortify its presence in the highly regulated market space. With this acquisition the company now has presence in 2 major countries, UK and Australia for which it holds manufacturing approvals. Last year, we acquired a majority stake in Nova Pharmaceuticals, an Australian based company. These acquisitions will fuel the growth of Marksans global strategy."

Marksans Pharma clarifies on news item

With reference to the news items appearing in a leading financial daily regarding the proposed acquisition by the Company of UK based OTC firm, Marksans Pharma Ltd has clarified that the Company is looking for inorganic growth opportunity in India as well as outside India. For the same, Company is in the process of dialogues and participation in the bidding processes. The Company has also appointed various Investment banking firms for the same purpose. However, so far, Company has not entered into any definitive share subscription agreement for the acquisition.

Marksans Pharma

Marksans Pharma Ltd has informed that the Company has received Certificate of suitability for Ciprofloxacin Hydrochloride drug substance from the European Directorate for the Quality of Medicines and Healthcare (EDQM).

This Certificate is recognized by 35 signatory states of the European Pharmacopoeia Convention and by the European Union. Other Countries have also chosen to recognize them. This Certificate of Suitability can be used by the manufacturers of pharmaceutical products in their applications for marketing authorization to demonstrate the compliance of the drug substance used with the official monograph of European Pharmacopoeia.

With the grant of this Certificate of Suitability for Ciprofloxacin Hydrochloride drug
substance by EDQM, the doors of European markets have opened for access for the
Company's API business. The Company is one of the largest manufacturer of Ciprofloxacin in the world.

It is a significant achievement as the Company is focusing on the Regulated Market for its growth. Apart from this, Company has also filed applications for other drug substances which are under consideration with EDQM.