Shilpa Medicare Signs MoU to Acquire Austria's LOBA Finchemie

Raichur, Karnataka, India

-- All-cash deal for 100% shares of LOBA.
-- LOBA is a profit-making company; facilities conform to top Euro cGMP, USFDA specifications.
-- LOBA provides specialty APIs, organic intermediates, biochemical diagnostics, and CRAMS.
-- Acquisition will provide Shilpa with immediate access to LOBA's global customer base.
-- "Shilpa-LOBA combination would be a formidable entity in the global oncology and CRAMS sectors": Shilpa Managing Director Vishnukant Bhutada.

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Shilpa Medicare Ltd, one of India's leading specialty pharmaceutical manufacturers with primary focus on custom synthesis and oncology APIs, has entered into a memorandum of understanding (MoU) with LOBA Finchemie AG, Austria, to acquire 100% shares of LOBA in an all-cash deal.

The formal terms will be announced after the due diligence process, currently on, is completed.

Founded in 1957, the privately-owned LOBA provides specialty APIs, organic intermediates, biochemical diagnostics, and customs synthesis. With facilities conforming to top Euro cGMP and USFDA specifications, LOBA counts some of the world's largest pharmaceutical and diagnostic companies as its business partners. The company's product range covers 500 organic compounds available from kilo-to-small ton quantities.

LOBA is a profit-making company, with current annual revenue at nearly USD 15 million.

Comment by Vishnukant Bhutada, Managing Director, Shilpa Medicare

LOBA's acquisition, if successful, will fast forward Shilpa Medicare's vision of becoming India's leading manufacturer in the high growth oncology and CRAMS sectors, said Vishnukant Bhutada, Managing Director, Shilpa Medicare.

"LOBA, with its product range, long-standing customer relationships in highly regulated markets, and internationally certified and compliant R&D and manufacturing facilities, is a perfect strategic fit for Shilpa Medicare. Given our highly skilled talent pool and low operational costs, the Shilpa-LOBA combination would be a formidable entity in the global oncology and CRAMS sectors," Mr Bhutada said.

About Shilpa Medicare

Headquartered in Raichur, Karnataka state, Shilpa Medicare Ltd (www.vbshilpa.com) is among India's leading and fastest-growing manufacturers in pharmaceutical custom synthesis and APIs related to the oncology and non-oncology segments. In addition to the two current WHO GMP certified plants that have been audited and approved by global pharmaceutical majors, the company is setting up a third EOU exclusively for oncology APIs and customs synthesis at a cost of INR 700-750 million.

Shilpa Medicare was incorporated in 1987 by first generation entrepreneur Vishnukant Bhutada and his associates. Shilpa Medicare's FY2006-07 revenue was INR 674.1 million, of which exports constituted 76%, on INR 34.7 million equity share capital.

Source: Shilpa Medicare Ltd (Business Wire India)

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