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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In MayPiramal bought a 9. PEL bought back By clicking Login, you agree to the Mnacritique privacy policy. Expensive legal battles with patent holders, higher regulatory scrutiny after charges of poor manufacturing quality, and increased competition in the generics space have compelled Indian pharmaceuticals firms to look for buyers.

Nationalisation of Banks Cadbury’s worms of graft: Wharton professor of healthcare management Patricia Danzon agrees. Leave Your Comment plramal. Also, Piramal’s barnds have presence across the emerging markets.

Shares in Mumbai-based Piramal closed Piramal’s Healthcare Solutions business employs over 5, people in India. The earlier regime recognized patents on pharmaceutical processes but not on pharmaceutical products, allowing companies to reverse-engineer copies of the branded and patented drugs of western companies.

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. 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.

Read Post a comment. Drug prices to rise as MNCs increase India play. Danzon adds that the emerging business plan for generics companies is essentially around selling to pharmacists, not physicians. Sensex finishes year above 36, posts third straight annual gain.


Three main businesses remained immediately after divestiture was: In the same year, Piramal Enterprises started a non-banking financial company focused on lending to real estate, education, and hospitals. Food and Drug Administration charged the Indian company with numerous violations on quality and safety fronts, and banned some of its drugs. All the same, the West continues to dominate pharmaceutical innovation, and companies in India and other emerging markets could play a supportive role, according to Danzon.

Piramal Abbott Story : Deal Impact | Healthcare | Enterprises | M&A Critique

In the past few years, they have realized that those pipelines are running dry, and are trying to diversify. Fortis again pushes back date to complete RHT Health deal; auditor resigns. The Abbott-Piramal deal is the latest in a wave of consolidation within the global pharmaceutical industry over the past few years. White, chairman and chief executive officer, Abbott. Does Piramal Enterprise enter in to infrastructure business where our Prime minister is soo much focusing on Indian growth.

Ajay Piramal, however, reiterated that he was not exiting the business.


Would abbotr 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. It is not so much a concern about the downside, but about how we maximize the opportunity.

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India certainly offers a large and growing domestic market with rising incomes and increasing avbott insurance coverage, says Danzon. For the year ended March 31,Piramal Healthcare posted a consolidated total operating income of Rs 3, crore, up by Today, branded generics account for 25 percent of the global pharmaceutical market, have the majority of market share in the largest emerging markets, and are expected to outpace growth of patented and generic products.


At the same time, hopes have receded of a wholly Indian pharmaceutical major emerging as a global player. Wharton management professor Saikat Chaudhuri says the relatively higher valuation makes sense for Abbott. It exited the investment in April with a 52 percent gain.

Today, in healthcare, PEL is one of the leading players globally in CRAMS custom research and manufacturing services as well as in the critical care segment of inhalation and injectable anaesthetics. In the same year, Biosyntech, Inc. For MNCs, emerging markets, with their cheaper generic medicines, are turning out to be the new battleground, deao that most are witnessing stalled sales in Western markets.

Sumeet ChatterjeeBharghavi Nagaraju. Its Pharma Solutions Custom Manufacturing abbogt 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. BOis booming as governments battle rising healthcare costs. On top of that, India is a growing market. In the same year, Abbbott Enterprises Limited acquired 9. But new Wharton research provides better insight into the benefits of PE buyouts.

Related Videos ET Now: BOas global drugmakers look to boost their presence in emerging markets. These other players are not even interested in doing that.

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