NYSE-listed pharma major Abbott Labs has inked a deal with Piramal Healthcare to acquire Piramal’s Healthcare Solutions business. Abbott to Become No. 1 Pharmaceutical Company in India with Acquisition of Piramal’s Healthcare Solutions Business. May 21, am. N) will pay $ billion to acquire the branded generics business of Piramal’s healthcare solutions accounted for about 55 percent of its.
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The stock markets reacted negatively to the deal. BOis booming as governments battle rising healthcare costs. But that is also changing, she says.
This is the 2nd-largest deal ever in the Indian pharma industry, just behind Daiichi Sankyo’s takeover of Ranbaxy in Industry forecaster IMS Health predicts leading emerging markets will show annual pharmaceuticals sales growth of 14 to 17 percent throughagainst just 3 to 6 percent a year for developed markets. Abbott will pay Rs per share. Reliance to buy majority stake in renewable energy services firm Kanoda.
More news by Piramal Healthcare. Large foreign drug makers, including Abbott, Pfizer Inc. Facts, background information, dossiers. Read what you need to know about our industry portal bionity. Piramal’s Healthcare Solutions business has a comprehensive portfolio of acqiusition generics, including market-leading brands in multiple therapeutic areas, including antibiotics, respiratory, cardiovascular, pain and oc.
Related Videos ET Now: Additional Reading Management Finding the Virtue in Private Equity Firms Many view private equity firms as villainous actors intent on the singular goal of profit. Piramal Healthcare also retains custom manufacturing, over-the-counter consumer products, diagnostic medical devices and services and clinical research, among other activities.
Trending New models of oc China Special: In the past few years, they have realized that those pipelines are running dry, and are trying to diversify. Featured Today In Travel. Piramal, however, expressed confidence that existing businesses such as patented products yealthcare make gains in the domestic market in two-three years. The sale will also involve the transfer of the employees of the domestic formulations business.
There are pirammal limited number of Heslthcare generics companies that are attractive, and there might be considerable competition for them. The business will continue to be led by its current India-based management team. Drug prices to rise as MNCs increase India play.
Abbott buys Piramal’s pharma arm for $bn – Times of India
Expensive legal battles with patent holders, higher regulatory scrutiny after charges of healthcarr manufacturing quality, and increased competition in the generics space have compelled Indian pharmaceuticals firms to look for buyers. On Friday, Piramal Healthcare stocks went up to Rs Abbott Piramal Healthcare pain neuroscience generics antibiotics. With an accout for my.
The earlier regime recognized patents on pharmaceutical processes but not on pharmaceutical products, allowing companies to reverse-engineer copies of the branded and patented drugs of western companies. It makes a lot of sense if they can pull off all the integration issues. The Healthcare Solutions business will operate as a separate business unit, reporting into Abbott’s newly-created Established Products Division EPDwhich was formed to focus on branded generics, maximising the opportunity in emerging markets.
This is no different for Chinese firms. The combined Abbott and Piramal sales force will be the largest in India, Warmuth said, adding that the price that it paid for the Indian business was just right. Now, Piramal on its own has that opportunity. My watch list my.
A ‘Bigger Foothold’: What Does the Abbott-Piramal Deal Mean for Indian Pharma?
India certainly offers a large and growing domestic market with rising incomes and increasing health solurions coverage, says Danzon. Your browser is not current.
Mumbai-based Piramal said it would consider paying a special dividend and would use deal proceeds to invest in its remaining businesses and pay down debt.
That is one reason pharmaceutical multinationals are doing deals with the relatively small number of well established Indian companies that have met international standards in manufacturing.
The deal, subject to Piramal Healthcare shareholder approval, is expected to close in solutiona second half of Login from existing account Facebook Google Email. According to Abbott statement, branded generics have significant brand equity in many international markets, providing durable, sustainable franchises for future growth.
Abbott to pay $3.7 billion for unit of India’s Piramal
For a period of eight years, Piramal will not engage in generic pharmaceuticals business in India and other emerging markets. Wharton professor of healthcare management Patricia Danzon agrees.
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By comparison, Cipla trades at about 4. All the same, the West continues to dominate pharmaceutical innovation, and companies in India and other emerging markets could play a supportive role, according to Danzon.
Abbott collaborated with Ahmedabad-based Cadila Healthcare Ltd recently to expand its generic drugs portfolio for global markets.