Pharmaceuticals Sector:
Recent News
Following are the key developments in the
pharmaceuticals space in October 2014:
- US Congress is probing around 14 companies over
price escalation of generic drugs including Dr Reddy’s Laboratories and
Sun Pharmaceutical Industries. Other companies include Actavis, Apotex
Corp, Endo International, Global Pharmaceuticals, Heritage
Pharmaceuticals, Lannett Company, Marathon Pharmaceuticals, Mylan, Par
Pharmaceuticals, Teva, West-Ward Pharmaceuticals and Zydus
Pharmaceuticals.
- As part of its strategy to boost the presence
in Iranian pharmaceuticals market, valued at US$4bn, Cipla is planning to
set up a manufacturing plant in partnership with its local distributor. As
per the agreement, Cipla will own a 75% stake in the plant and will invest
Rs2.25bn (US$36.65 mn) over three years in areas including machinery and
equipment for the facility.
- The National Pharmaceutical Pricing Authority
(NPPA) has clarified to the Delhi High Court that the Centre's recent
decision to withdraw its power to fix prices of non-essential
medicines will not affect its earlier order dated 10 July 2014 on
the prices of 108 drug formulations.
- Ranbaxy has settled its litigation with Texas
Medicaid Program (a public-funded healthcare programme for people with low
income) under the settlement agreement and agreed to pay a penalty of
US$39.8mn to the State of Texas in a series of tranches through August
2015.
Mergers & acquisitions/joint
ventures/partnerships
- American private equity fund TA
Associates is in advanced stage of talks with the
promoters of Famy Care and
private equity investor AIF Capital to
acquire a 35% stake in the company for US$200mn (Rs12bn), as per media
reports.
- Ipca Laboratories has acquired the high-potency
oral solid dosage formulations facility of Alpa Labs, situated at
Pithampur near Indore, on a going-concern basis for a consideration of
Rs717.1mn (US$12mn) including non-compete fees. The acquisition will allow
Ipca to forward integrate hormonal APIs manufactured at its Nandesari
plant (acquired from Tonira) with hormonal formulations.
- Cipla
has entered into a sales and distribution agreement with Teva, whereby its
South African subsidiary, Cipla Medpro, will exclusively market Teva’s
product portfolio in South Africa. The partnership is subject to approval
of the Competition Commission of South Africa.
- As per media reports, ChrysCapital, India's
largest home-grown independent private equity (PE) firm, is negotiating
with a number of potential buyers to sell its 11% stake in Mankind Pharma
for more than US$200mn, valuing the company at more than US$2bn.
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