According to The Economic Times via the Pharmalot blog, Takeda Pharmaceuticals is seekign to purchase an Indian pharma company and is considering both Cipla and Lupin. Either company would give Takeda a beach head in the generics market in India, with Cipla as No. 2 in market and Lupin at No. 5. According to McKinsey, the India pharma market will grow from today's $12 billion to more than $55 billion by 2020 making it one of the world's fastest growers.
Rumor has it that Lupin is asking $1.5 billion for its assets or 17 times sales. Wow! Good selling price if you can get extract it from the buyer. A Lupin spokesman however termed the rumor a "baseless market speculation." Sounds like they are ready to sell any minute doesn't it?
This no doubt gives India regulators heartburn as they have already expressed concern that both Western and Japanese Big Pharma are buying up the domestic Indian companies. The fear is that the acquirers will drive up prices on medicines for India's copious poor populations -- making many medicines unaffordable. This is one reason that applications for compulsory licenses to Western drugs still under patent have also been rising. This is one market dynamic to watch.
Posted by Bruce Lehr Aug 24th 2011.