India's top pharmaceutical
companies are set to embark on an
acquisition spree to bulk up their overseas
presence.
Lupin BSE 0.03 % , Torrent, Zydus BSE 0.07 % Cadila, Intas, Aurobindo BSE 1.11 % , Dr Reddy's and No. 1 Sun Pharma BSE 0.16 % are said to be examining proposals of varying sizes, cherrypicking those that can fill gaps in the product range. These companies are all looking at popular brands. They are scouting for niche manufacturing sites, promising experimental drugs, specialty firms in emerging markets and opportunities in the US, Europe or Japan, putting the industry at the verge of an inflection point, experts said. At the same time, a bunch of small Indian firms are also emerging as prime acquisition targets.
The overseas companies on shopping lists include Brazil's skin carefocused Theraskin, which has attracted interest from Torrent Pharma and Lupin. While Torrent is seen placing bids for a long list of assets to catch up with its homegrown peers, Lupin has shown an appetite for snapping up acquisitions that it finds a good fit.
After taking over Gavis for a record $880 million last year, Lupin recently picked up a set of brands from Shionogi in Japan, further strengthening its hold in the world's secondlargest pharmaceutical market after the US. Lupin and Torrent did not respond to questions from ET. With an ebitda (earnings before interest, taxes, depreciation, and amortisation) of $15 million, an investment banker said Theraskin could be valued at above $200 million.
Lupin BSE 0.03 % , Torrent, Zydus BSE 0.07 % Cadila, Intas, Aurobindo BSE 1.11 % , Dr Reddy's and No. 1 Sun Pharma BSE 0.16 % are said to be examining proposals of varying sizes, cherrypicking those that can fill gaps in the product range. These companies are all looking at popular brands. They are scouting for niche manufacturing sites, promising experimental drugs, specialty firms in emerging markets and opportunities in the US, Europe or Japan, putting the industry at the verge of an inflection point, experts said. At the same time, a bunch of small Indian firms are also emerging as prime acquisition targets.
The overseas companies on shopping lists include Brazil's skin carefocused Theraskin, which has attracted interest from Torrent Pharma and Lupin. While Torrent is seen placing bids for a long list of assets to catch up with its homegrown peers, Lupin has shown an appetite for snapping up acquisitions that it finds a good fit.
After taking over Gavis for a record $880 million last year, Lupin recently picked up a set of brands from Shionogi in Japan, further strengthening its hold in the world's secondlargest pharmaceutical market after the US. Lupin and Torrent did not respond to questions from ET. With an ebitda (earnings before interest, taxes, depreciation, and amortisation) of $15 million, an investment banker said Theraskin could be valued at above $200 million.
No comments:
Post a Comment