Piramal deal will give Abbott India size Piramal, who is the chairman of Piramal Healthcare, said “the valuation of about nine times shows the. It took four hours for Ajay Piramal to negotiate a whopping $ billion valuation for his generics business with Abbott. Just how did he pull it off. Abbott to pay $ billion for unit of India’s Piramal Disagreements over valuation have prevented more deals from getting done. Abbott.
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Mr Piramal did not say what he will do with the remaining money. Danzon adds that the emerging business plan for generics companies is essentially around selling to pharmacists, not physicians.
In fact, 10 days before the Piramal acquisition, Abbott announced a licensing and supply deal with Indian pharmaceutical company Zydus Cadila. However, companies like Abbott and others getting into new generic drug markets must be watchful of the changing lay of the land there as well, according to Danzon. Globally, Abbott also faces the pressure of playing catch-up with its bigger rivals.
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.
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Growth Through Overseas Expansion Globalization is not just for manufacturers. You have to create a whole organization, and that takes time. A key differentiator here is that unlike in the U. It is paying roughly 8.
Some said prices of medicines will go up. It is increasingly a preferred choice for infrastructure and real estate developers as well. It makes a lot of sense if they can pull off all the integration issues. Abbott and other Big Pharma companies face the twin challenges of slow growth in the developed markets and maturing product pipelines that are getting harder to replenish with newer, blockbuster drugs, according to Chaudhuri.
Fill in your details: Find this comment offensive? Food and Drug Administration said in February Ranbaxy sold misbranded or adulterated drugs in the United States, its largest market, having earlier banned imports of over 30 generic drugs from the firm.
The earlier regime recognized patents on pharmaceutical processes but not on pharmaceutical products, allowing companies to reverse-engineer copies of the abgott and patented drugs of western companies. Abbott plans to fund the deal with cash on its balance sheet and said it would not change its earnings outlook for It will, however, continue research in drug discovery through an affiliate company.
These other players are not even interested in doing that. L as possible buyers. There is intense speculation that Mr Piramal will buy companies in some of these segments. Piramal Healthcare also retains custom manufacturing, over-the-counter consumer products, diagnostic medical devices and services and clinical research, among other activities.
Read more on Piramal. Sumeet ChatterjeeBharghavi Nagaraju. It is not so much a concern about veal downside, but about how we maximize the opportunity.
As a global MNC, Abbott does. My Saved Articles Sign in Sign up. Many view private equity firms as villainous actors intent on the singular goal of profit. Oiramal according to your convenience.
Unlike other pharmaceutical acquisitions that have been targeted at buying Indian generic capacity to service Western and emerging markets, the Abbott-Piramal deal is primarily focused on the domestic market, vluation to Mumbai-based business magazine Business India.
By comparison, Cipla trades at about 4. Mr Piramal said he would pay a special dividend and pare debt, but otherwise declined to say much on how he planned to use the bonanza.