Mergers and acquisitions: Trends in Pharma sector

Mergers and acquisitions have always been a favourite of the pharma industry. With the easy availability of capital, increased global interest in India's research and development capability, the country's pharmaceutical industry offers a good climate for mergers and acquisitions. India’s strong manufacturing base will stand some global companies in good stead as well.

Easy availability of investment capital and increasing R&D capabilities are major factors attracting global players for M&As in the Indian pharma sector. Other factors such as change in lifestyles, a greater per capita expenditure on medicines, higher process and re-engineering skills, low manufacturing costs and quick adaptation to new technology would also help the country to position itself as a preferred manufacturing destination.The major pharma mergers and acquisitions in 2007 can be enlisted as Wockhardt's acquisition of the French company Negma Laboratories for $265 million and the US-based Morton Grove Pharmas for $38 millionJubilant Organosys' acquisition of Hollister-Stier Laboratories of the US for $122.5 millionAlembic's buyout of the entire domestic non-oncology formulation business of Dabur Pharma for Rs 159 crore.

Sun Pharma's acquisition of Israel's Taro Pharma for about Rs 1,800 crore has not yet been completed as it awaits shareholders' approval.

Some recent merger & acquisitions are given below:A win win dealDaiichi Sankyo is now Asia’s top generics powerhouse. Earlier, in June, when Japan’s No 3 pharma company Daiichi Sankyo acquired India’s top generics company Ranbaxy laboratories, just about everybody was taken by surprise. DetailsBMP Sunstone acquires Shanghai Rongheng PharmaThe Shanghai Administration for Industry and Commerce (SHAIC) has granted a new business license to BMP Sunstone Corporation for its establishment of an enterprise with foreign investment in China. DetailsNovartis acquires 25% stake in Alcon from NestleSwiss healthcare giant Novartis has acquired a 25 percent stake in Alcon as part of a definitive agreement with Nestlé reached in April 2008 that provides the right to acquire majority ownership of the world leader in eye care in two steps. Details

References:http://www.biospectrumasia.comhttp://www.expresspharmaonline.com/20080215/management01.shtmlhttp://www.thehindubusinessline.com/2003/11/16/stories/2003111601480200.htm

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