According to Malik, "Mylan was a local company, with a good critical mass, excellent supply chain, service to the customers,
and great facilities with 20 billion units capabilities per year. They had efficiency of scale but they also realized that
they had limitations, as the US as a sole market is in itself a limitation factor. Mylan therefore needed to balance geographies....
The only thing they need to achieve is the scale in geographies, and this will be brought together by the joined efforts of
the Mylan and Matrix teams."
The merger highlights how India can be a stepping stone for any global strategy. From backward integration to research and
development facilities (Matrix is also posting encouraging results from its contract research and manufacturing activities),
from international sales networks to FDA-approved manufacturing units, India's offerings seem unending. A number of local
companies can provide the pharmaceutical industry with tailor-made solutions for global growth.
As Malik concludes, "We really feel proud of what has been achieved at Matrix in a short span. We started from scratch and
created the kind of shareholder value that got them the award of 'Fastest Wealth Creator' twice in the last six years."
One-Stop Shop Service
The irresistible ascension of a service provider
Profile: Jubilant Organosys
Taking advantage of the pricing pressure that started weighing on the global pharmaceutical shoulders a decade ago, Jubilant
Organosys (Uttar Pradesh) has become one of India's most noticeable and promising vertically-integrated leaders and has successfully
established its presence at the heart of western markets. Anticipating well the growth in demand, Shyam Bhartia, the company's
chairman and managing director, steered Jubilant into a string of acquisitions that have made the company a well-anchored
global player, with the aim of becoming a billion-dollar company within the next three years.
From moving into active pharmaceutical ingredient (API) production in 2002, to purchasing PSI N.V. (Belgium) in order to learn
more about the European market, to acquiring in 2005 US laboratory and generic manufacturer Trinity/Trigen (Maryland), to
purchasing in 2007 Hollister-Stier Laboratories LLC (Spokane, WA), Jubilant has been busy expanding its reach across the globe,
and across the spectrum of pharmaceutical activities.
Today, Jubilant's focus is the development of its profile as a leading custom research and manufacturing services provider.
The company's acquisition of Hollister-Stier will provide it with a direct entry into injectables contract manufacturing while
bringing in a high-quality allergy extracts and products business.
Explaining the rationale behind these foreign purchases, Bhartia explains that "the ideal acquisition is one where we can
get a certain technology platform, one that is adding to our technology expertise and to our customer base when the customer
profile is good. If the management of the company can take the benefit of Indian research and manufacturing and leverage it
to increase the business, we see opportunities for acquisition." Indeed, although it might require some changes in mentality
in some parts of the western world, this is what is truly at stake. And to further show where the real synergies lie, he adds:
"We don't acquire for top and bottom line growth. This was our policy in the US, too when we acquired Trigen/Trinity. The
strength was that we were developing products in India and manufacturing them in the US. Abbreviated new drug applications
(ANDAs) were developed in India at much lower costs than in the states, filed in the US, manufactured there and then sold
to the US industry. This is proper leveraging of the strengths of both sides."