Bengaluru-based Micro Labs Ltd, one of the largest privately held drugmakers in India, said Tuesday it has acquired Nigerian pharmaceuticals company Swiss Pharma Nigeria Ltd, which operates as Swipha.
The announcement comes a month and a half after VCCircle first reported Micro Labs was in advanced stages to acquire Swipha, which markets and manufactures branded generics.
Micro Labs didn’t disclose the deal value but said in a statement that the acquisition will support its expansion into the Nigerian and broader African markets.
The deal is expected to positively impact Nigeria’s pharmaceutical industry where both companies already have operations. It will generate significant value by consolidating portfolios and broadening treatment options, VCCircle earlier reported.
This acquisition will also enhance Swipha’s distribution network, improving supply chain efficiency. Swipha’s WHO-approved plant will allow Micro Labs to manufacture and export products to neighboring countries, while synergies between the companies will help reduce costs.
Founded in 1976, Swipha manufactures, markets, and distributes branded generics. The company produces a range of generics across six key therapeutic areas: central nervous system, anti-malaria, anti-infectives, cardiovascular, anti-diabetic and nutraceuticals.
Established in 1973, the Surana family-owned Micro Labs group ranks among the top 20 companies in the domestic formulations market, holding a 1.7% market share, according to data from the All-India Organisation of Chemists and Druggists-AWACS.
Its portfolio includes cardiology, diabetology, pain management, dermatology, ophthalmology, veterinary and neurology. The company operates 14 formulation plants, including an injectable unit and bulk drug facility, in key regions such as the United States, the United Kingdom, Germany, Australia, and Nigeria, as well as in emerging markets. In Nigeria, the company has operated through its subsidiary Micro Nova Pharmaceutical Ind. Ltd for over a decade.
Micro Labs reported consolidated net sales of Rs 5,865 crore for fiscal year 2022-23, up from Rs 5,167 crore the previous year. However, net profit declined to Rs 1,148 crore from Rs 1,351 crore.
Boutique law firm Avyakta Law acted as the legal advisor to Micro Labs for this transaction.