...or is it Indian pharma’s new mantra?
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all is passé! Who says?! In an era of mega real estate property sale, wide-body aircraft launches and of course, colossal deals being closed globally, how can one lay a wager on anything minuscule?! But somehow, Indian pharma honchos seem to bet on ‘small being beautiful’, and have started looking at small acquisitions; so much unlike big ticket targets they were eyeing just a year back! Yes, out of the 21 coup d’états by Indian drug makers during the past year, a thumping 85% were valued between just $25–$100 million – puny when compared to gargantuan acquisitions like betapharm, Terapia and Taro made by Dr.Reddy’s, Ranbaxy and Sun Pharma respectively in the pre-2007 days! So, have Indian pharmas lost their appetite? Or is it their small size (when compared with global behemoths) that’s forcing them to? As a resopnse, Anindya Acharya, Deputy Director, Drugs and Pharmaceuticals, CII snaps, “No! It’s a well planned strategic move by the Indian pharma companies, targeted towards bettering their portfolios by entering certain niche segments rather than gobbling the entire portfolio of the prey.” Sounds convincing... until you look at a recent study by PwC. “Capital constraints can be a significant brake on growth for domestic pharma companies. About half of all the companies surveyed might be looking for deals if funding obstacles could be overcome,” the report stated. Whatever be the reason for softening of India Inc.’s motives, things look well in control at the moment. At least, the madness of going global for the sake of doing so appears to be over... or atleast we hope!
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
Sm
all is passé! Who says?! In an era of mega real estate property sale, wide-body aircraft launches and of course, colossal deals being closed globally, how can one lay a wager on anything minuscule?! But somehow, Indian pharma honchos seem to bet on ‘small being beautiful’, and have started looking at small acquisitions; so much unlike big ticket targets they were eyeing just a year back! Yes, out of the 21 coup d’états by Indian drug makers during the past year, a thumping 85% were valued between just $25–$100 million – puny when compared to gargantuan acquisitions like betapharm, Terapia and Taro made by Dr.Reddy’s, Ranbaxy and Sun Pharma respectively in the pre-2007 days! So, have Indian pharmas lost their appetite? Or is it their small size (when compared with global behemoths) that’s forcing them to? As a resopnse, Anindya Acharya, Deputy Director, Drugs and Pharmaceuticals, CII snaps, “No! It’s a well planned strategic move by the Indian pharma companies, targeted towards bettering their portfolios by entering certain niche segments rather than gobbling the entire portfolio of the prey.” Sounds convincing... until you look at a recent study by PwC. “Capital constraints can be a significant brake on growth for domestic pharma companies. About half of all the companies surveyed might be looking for deals if funding obstacles could be overcome,” the report stated. Whatever be the reason for softening of India Inc.’s motives, things look well in control at the moment. At least, the madness of going global for the sake of doing so appears to be over... or atleast we hope!For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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