Indian drug makers Ranbaxy, Dr Reddy’s and Lupin are eyeing 53% stake in Romania’s leading pharmaceutical company Antibiotice, reports Economic Times.
The state-owned company, which is being privatized, is to be auctioned in March with a reserve price of $200 million (Rs 8 billion). Ranbaxy Laboratories’ CEO & MD Malvinder Singh believes that there is more opportunity for acquisitions in the emerging markets because of more sustainability and earnings growth. A source added that while Ranbaxy Laboratories has established a strong presence in Romania following its acquisition of Terapia in 2006, it made sense for the company to buy attractive assets to pre-empt competition from any Indian company in the lucrative Romanian market. Lupin is also said to be looking for acquisitions in central Europe. 53 companies, including five from India, are believed to have sent letters to the Romanian government evincing interest in buying Antibiotice. The deadline for depositing guarantee fee to participate in the auction is March 17.
Antibiotice is a profit-making generic company with nine production lines to manufacture several dosages of formulations. It has a portfolio comprising over 120 medicines across 11 therapeutic segments. The company is the leading producer of anti-infectives and various injectables in Romania with a pipeline of discovery drugs under development. (Economic Times)