Dose of bitter pills, few booster injections for pharma sector in 2013

Dec 29 2013, 15:55 IST
Comments 0
SummaryDomestic firms coming under increased scrutiny of global regulators, resulting in Ranbaxy paying a record USD 500 million fine, and drugs becoming cheaper in India thanks to a new pricing policy marked a roller-coaster year 2013 for the pharma industry.

and UK health regulator MHRA which issued import alerts on the drugs produced there.

The MHRA also imposed restrictions on import of medicines made at Wockhardt's unit at Kadaiya in Nani Daman for manufacturing norms violation.

Adding to Wockhardt's woes, the USFDA also imposed restrictions on import of medicines produced at the company's Chikalthana plant at Aurangabad in Maharashtra.

While there was concern in India over acquisition of homegrown pharma firms by the multinationals, it didn't deter domestic firms from carrying out similar activities overseas.

Hyderabad-based pharma major Dr Reddy's Laboratories acquired 93 per cent stake in Netherlands-based speciality pharmaceutical company OctoPlus NV for an undisclosed sum.

Likewise, Cipla also completed the buyout of South Africa's Cipla Medpro for an aggregate consideration of Rs 2,707 crore. It also gained majority stake in Uganda-based Quality Chemical Industries Ltd with the acquisition of additional 14.5 per cent stake for USD 15 million.

During the year, Cipla also acquired Croatia-based firm Celeris d.o.o, distributor of its products in that country.

Similarly, Piramal Enterprises acquired over-the-counter (OTC) skincare brand Caladryl in India from Valeant Pharmaceuticals International Inc for an undisclosed sum.

Yet, it was not always a cake walk for the Indian firms as domestic major Sun Pharmaceutical Industries found out. It had to call off its Rs 3,100 crore bid to acquire outstanding shares of Israel's Taro Pharmaceutical citing pricing issues.

The unexpected development negated Sun Pharma's efforts to fully acquire Taro Pharmaceutical.

Keeping the merger and acquisition activity alive in the domestic scene, the year saw Torrent Pharmaceuticals' Rs 2,000 crore deal to acquire branded formulation business in India and Nepal of Elder Pharmaceuticals.

Vivimed Labs also acquired a manufacturing facility of Actavis Pharma Manufacturing Ltd for a total consideration of Rs 122 crore.

In another development UK-based GlaxoSmithKline Plc (GSK) announced an open offer to buy 24.33 per cent stake in its Indian arm GlaxoSmithKline Pharmaceuticals for a total consideration of Rs 6,389.02 crore.

The penchant for multinationals to take over Indian firms was clearly indicated when US pharma major Mylan Inc decided to acquire Agila Specialties, maker of generic injectable products, from Bangalore-based Strides Arcolab Ltd for USD 1.6 billion (about Rs 8,700 crore).

In a case highlighting uncertain nature of international collaborations, Dr Reddy's Laboratories and Fujifilm Corporation decided to terminate a pact to establish a joint venture and an exclusive partnership for generic drugs business in the Japanese market.

2013 will also go down in the history of Indian pharma industry when landmark

Single Page Format
Ads by Google

More from Companies

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...