Corona Remedies Acquires Two Brands From Abbott India

Ahmedabad-based pharmaceuticals player Corona Remedies has announced the acquisition of two brands in the prescription drug category from Abbott India for managing diabetes and hyper-thyroidism.

The company, with a turnover of Rs. 415-crore in 2017-18, said the two brands from Abbott were Obimet and Thyrocab comprising 14 product line extensions in India. The two brands are expected to generate sales revenues of about Rs. 25-crore in the first year of integration. Both drugs are part of anti-diabetic and thyroid management segments that has a market worth of Rs. 10,839-crore, with a growth of nearly 13% year-on-year, according to the January 2018 MAT data of pharma research firm, AWACS.

“This is our second acquisition in the last one year after we acquired four products from GSK in 2017 and it is in line with our inorganic growth strategy. We are also in active discussion with a few other companies for further brand acquisitions in the coming days,” said Mr. Tejas Kothari, Head – Strategy, Corona.

New plant

Corona plans to invest Rs. 60-crore for setting up its second manufacturing facility at Bavla near Ahmedabad, which it will fund through internal accruals. The company has acquired land for the new plant, which will be PIC/S compliant to cater to the European market. It can make 200-crore tablets, 60-crore capsules and 3-crore liquids per annum.