Cadila, Torrent surge Ahead for Merger
MUMBAI: Even as the shares of Indian pharmaceutical companies are gaining strength on a weak rupee, domestic players are looking at merger route for growth in tough competitive environment.
According to sources, Cadila Health and Torrent Pharma are in preliminary talks to merge the two companies.
If the merger talks succeed, the new entity will become India’s third largest pharmaceutical company in terms of sales going forward after Sun Pharmaceuticals and Dr Reddy’s.
Also, the merged entity will become India’s second largest pharma major in terms of the ANDA pipeline and drug approval applications.
Sources added that the merger will help both Cadila and Torrent as they have diverse product portfolio.Torrent Pharmaceuticals has a portfolio of drugs for chronic ailments and a strong presence in the Latin American markets while Cadila Healthcare specialises in Acute portfolio.
In a reply to PL Now queries on the merger, Cadila Health denied merger talks while Torrent Pharmaceuticals did not reply to queries sent.
Shares of Torrent Pharmaceuticals reacted positively to the PL exclusive and rallied over 5 per cent intraday.
At 11:50 a.m.; the stock was at Rs 440, up 4.40 per cent, on the BSE. It touched a high of Rs 444.40 and a low of Rs 423 in trade today.
Cadila Healthcare was at Rs 646.60, up 1.27 per cent, on the BSE. It touched a high of Rs 654 and a low of Rs 643 in trade today
