One More Indian Pharma Company’s Domestic Market Sold Out. Torrent Pharma acquires Elder’s domestic business for Rs 2000 crore
Torrent Pharma acquires Elder’s domestic business for Rs 2000 crore
A number of Indian pharma companies have recently cashed out at a valuation of three to four times their annual sales. The most prominent example is that of Piramal Healthcare which sold its domestic formulations business to Abbott Labs for more than Rs 17,000 crore in May 2010. Strides Labs sold its injectibles business to Mylan for Rs 9,000 crore.Torrent PharmaceuticalsBSE -4.04 % has entered into a definitive agreement to acquire the branded domestic formulations business of Elder Pharmaceutical in India and Nepal for 2,004 crore. The deal will help the Ahmedabad-based company to widen its market share and bolster its total turnover to 4,831 crore and Elder to cut debts and restructure operations.
After three months (August-October) of continuous negative growth, pharma market in November grew by 6.9%.
Torrent will mainly get a foothold in women’s healthcare and pain management business. “This acquisition strengthens our position in womens’ healthcare and pain management business,” said Sudhir Mehta, chairman, Torrent group.
Elder shares lost early gains and fell 8.17% to 298.30 on BSE that was down about 1%. Torrent shares fell as much as 4% to 479.50. The deal was do ..
Elder has accumulated debt of Rs 1,300 crore after expanding operations through acquisitions. The company predominantly earns its reven ..