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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PEL bought back The Accidental Caviar King. Ajay Piramal has also taken over as chairman of Shriram Capital. The Abbott-Piramal combine reports to him, but he notes it will be run as a standalone business unit after the merger takes effect later this year. Piramal’s Healthcare Solutions business will become part of Abbott’s newly created, stand-alone Established Products Division.
Refrain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks, name calling or inciting hatred against any community. Increased funding expands the scope for drug research, but that alone is not enough; other pieces have to fall in place, Piramal notes. Abbott plans to fund the deal with cash on its balance sheet and said it would not change its earnings outlook for Abbott, which is celebrating its th year in India, has more than 2, employees across all of its businesses there.
Five years after Abbott deal, Piramal Enterprises delivers stellar growth | Forbes India
All Comments Your Activity. But new Wharton research provides better insight into the benefits of PE buyouts. As on 31 st March 54 33 Market Cap 7, 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.
That is one reason pharmaceutical multinationals are doing deals with the relatively small number of well established Indian companies that have met international standards in manufacturing.
Its Structured Investments Division invests in various sectors including infrastructure. Your guide to choosing the best books on business.
Let’s work together to keep the conversation civil. The deal, subject to Piramal Healthcare shareholder approval, is expected to close in the second half of Several other deals occurred over the past one abboty. Drug prices to rise as MNCs increase India play. Chaudhuri acknowledges those new realities, but with a patriotic tinge. Many view private equity firms as villainous actors intent on the singular goal of profit.
A ‘Bigger Foothold’: What Does the Abbott-Piramal Deal Mean for Indian Pharma?
For a period of eight years, Piramal will not ahbott in generic pharmaceuticals business in India and other emerging markets. Think Live Work Play. In the past few years, they have realized that those pipelines are running dry, and are trying to diversify. We have sent you a verification email. Out of which, INR 2, crore was used for buy-back of shares. Abbott will pay Rs per share.
Abbott buys Piramal’s pharma arm for $bn – Times of India
It exited the investment in April with a 52 percent gain. By comparison, Cipla trades at about 4. BOthe U. In the same year, Piramal Enterprises Limited acquired 9. Buy-back was took place in two tranches: Additional Reading Management Finding the Virtue in Private Equity Firms Many view private equity firms as villainous actors intent on the singular goal of profit.
Its Pharma Solutions Custom Manufacturing business recorded sales of Rs crore for the last year as compared to Rs crore during FY as result of closure of its manufacturing facility at Huddersfield, UK.
Obviously, whoever wants to strengthen Indian presence through buyouts, will have to shell out much more due to the higher demand for Indian assets.
Piramal sees his next big opportunity in distressed assets. Only fill in if you are not human. For consumers, the great value in generics is getting it cheaper. This deal valued Diagnostic services business at 3x FY Sales.
It allows Abbott to commercialize two dozen Zydus Cadila drugs in 15 emerging markets.
According to Reuters, Abbott was advised by Morgan Stanley. BOas global drugmakers look to boost their presence in emerging markets. Would they be able to maintain a decent rate of return for their shareholders or would the cash be squandered on ventures that would eventually prove unprofitable.
For the year ended March 31,Piramal Healthcare posted a consolidated total operating income of Rs 3, crore, up by The divestment of domestic formulation business turned PEL from being the pharmaceutical company to a diversified entity. Sign up for the weekly Knowledge Wharton e-mail newsletter, offering business leaders cutting-edge research and pigamal from Wharton faculty and other experts. India certainly offers a large and growing domestic market with rising incomes and increasing health insurance coverage, says Danzon.
Shares in Mumbai-based Piramal closed