New Delhi, November 03, 2017: Pharma major Torrent Pharmaceuticals Ltd is expected to make an announcement on a possible acquisition of the domestic business of Unichem Laboratories on Friday. Both the companies have their respective board meetings today according to thehindubusinessline.com.
According to market-watchers, the deal is being billed among the largest in the pharma landscape at over Rs 3,000 crore.
Market speculation of an imminent acquisition of the Indian business of Unichem – a pioneer in the pharmaceuticals sector in India, has been doing the rounds for quite some time. The oldest pharma player is believed to have found a suitable buyer in Torrent Pharma.
According to the reports published in In a recent exclusive interview to BusinessLine, Torrent Pharma Executive Chairman Samir Mehta had said that they were keen on a `Elder Pharma’ type of expansion in India, besides others in markets like the US. In 2013, Torrent Pharma had acquired Elder’s domestic business and that in Nepal for over Rs 2,000 crore.
According to the reports published in thehindubusinessline.com while putting India as a preferred geography for acquisitions, Mehta had said, “We are more keen on pursuing the inorganic opportunities in India and the US….The move that enhances our existing capabilities and future opportunities and also help us scale up the business presence.”
Inorganic growth opportunities play an important part of Torrent Pharma’s growth strategy besides product innovation and market expansion. Unichem’s rich portfolio of cardiovascular drugs, including Losar, is expected to add to Torrent Pharma’s existing offering.
For the fiscal 2016-17, Unichem had reported a net profit of Rs 103.87 crore on revenues of Rs 1,413.85 crore with earnings per share of Rs 11.29.
Thehindubusinessline.com also quoted that Unichem share prices rallied over the past one month from Rs 249.1 on October 3 to Rs 311.45 on November 2, rising by over 25 per cent. Torrent Pharma shares too posted gains during the past one month rising from Rs 1,243.35 to Rs 1,325.35.
Unichem promoters, Prakash Amrut Mody and wife Anita Prakash jointly own 80 per cent stake in the company.
For Torrent Pharma, the acquisition marks another important landmark in the company’s growth trajectory. In 2015-16, the company had acquired Zyg Pharma – USFDA approved dermatology platform and also acquired Minocycline ANDA for the US market from Sun Pharmaceuticals.
During 2016-17, it had acquired USFDA-approved API facility Glowchem. In April-May 2017, Torrent Pharma had acquired two brands – Regestrone and Pregachieve Swiss major Novartis AG.
