In May, U.S.-based Abbott Labs secured the top spot in India’s growing pharmaceutical industry with its US$ billion takeover of Piramal. In , Ajay Piramal promoted Piramal Healthcare sold off its main formulation business to Abbott India for over INR 17, crore and announced a buy-back of . When US-based global health care major Abbott acquired the formulations business of Piramal Healthcare in a $billion deal in , it had.

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It’s a job that has taken me on a private jet to Jaisalmer – where I wrote India’s first feature on fractional ownership of business jets – to the badlands of west UP where India’s sugar economy is inextricably now tied to politics. Since then, further pharmaceutical deals have been expected, as global majors search for growth and low-cost production of generics, as patents on major branded drugs are set to expire.

For the year ended March 31,Piramal Healthcare posted a consolidated total operating income of Rs 3, crore, up by BOthe U.

This is the 2nd-largest deal ever in the Indian pharma industry, just behind Daiichi Sankyo’s takeover of Ranbaxy in Sign up for the weekly Knowledge Wharton e-mail newsletter, offering business leaders cutting-edge research and ideas from Wharton faculty and other experts.

Today, in healthcare, PEL is one of the leading players globally in CRAMS custom research and manufacturing services as well as in the critical care segment of inhalation and injectable anaesthetics. BOis booming as governments battle rising healthcare costs.

Abbott will add branded generic drugs from the Piramal portfolio, including Phensedyl, one of the top two pharma brands in the country. Featured Today In Travel. He also acknowledged that the company had become a conglomerate and the structure made Piramal Enterprises difficult to understand.


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. More than one voice suggested the company return a part of the cash to its shareholders.

Seven years after Piramal deal, Abbott way off revenue target

It also has a strong presence in the OTC segment in India. The remaining consideration was paid in four installments each of four subsequent anniversaries of the closing, commencing in September Globally, Abbott also faces the pressure of playing catch-up with its bigger rivals. Wharton professor of healthcare management Patricia Danzon agrees. But new Wharton research provides better insight into the benefits of PE buyouts. After studying law I vectored towards journalism by accident and it’s the only job I’ve done since.

Does Piramal Enterprise enter in to infrastructure business where our Prime minister is soo much focusing on Indian growth.

Abbott To Acquire Piramal Healthcare Unit For $B | VCCircle

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. At a press conference to announce its quarterly and annual results for the financial year ended March 31,Ajay Piramal was in an upbeat mood. I’m a big fan of new business models and crafty entrepreneurs.

The year of the last action hero. It is not so much a concern about the downside, but about how we maximize the opportunity. Disagreements over valuation have prevented more deals from getting done.

A ‘Bigger Foothold’: What Does the Abbott-Piramal Deal Mean for Indian Pharma?

Out of which, INR 2, crore was used for buy-back of shares. Ajay Piramal, however, reiterated that he was not exiting the business.

Buy-back was took place in two tranches: Shares in Mumbai-based Piramal closed 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. Piramal sees his next big opportunity in distressed assets.


Let’s work together to keep the conversation civil. Business RBI to release new Rs. Abbott said it was advised by Morgan Stanley, while Piramal said it did not have a financial advisor on the deal. Related Videos ET Now: In fact, 10 days before the Piramal acquisition, Abbott announced a licensing and supply deal with Indian pharmaceutical company Zydus Cadila. Having created this value for the company, a part of it was distributed to the shareholders by the way of buyback of shares.

It will continue its drug discovery and research through Piramal Life Sciences Ltd. There are a limited number of Indian generics companies that are attractive, and there might be considerable competition for them. According to Wharton faculty and industry experts, changing global business models and the resources needed to develop blockbuster drugs are propelling Indian companies to join forces with multinationals through strategic alliances or as targets for acquisitions.

A key differentiator here is that unlike in the U. In the same year, Piramal Enterprises Limited acquired 9.

Abbott buys Piramal’s pharma arm for $bn – Times of India

Food and Drug Administration charged the Indian company with numerous violations on quality and safety fronts, and banned some of its drugs. In the same year, Biosyntech, Inc. As on 31 st March 54 33 Market Cap 7, White, chairman and chief executive officer, Abbott.

Reliance to buy majority stake in renewable energy services firm Kanoda. Drug prices to rise as MNCs increase India play.

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