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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Buy-back was took place in two tranches: Shares in Mumbai-based Piramal closed Video Slideshow Audio Twinterview. Chaudhuri acknowledges those new realities, but with a patriotic tinge. Abbott will add branded generic drugs from the Piramal portfolio, including Phensedyl, one of the top two pharma brands in the country.

It entered into financial services focused on real estate.

Ajay Piramal has also taken over as chairman of Shriram Capital. Abbott and other Big Pharma companies face the twin challenges of slow growth in the developed markets and maturing product pipelines that are getting harder to replenish with newer, blockbuster drugs, according to Chaudhuri. The 10 big questions for – Part 2.

In the ;iramal year, Biosyntech, Inc. Since then, further pharmaceutical deals have been expected, as global majors search for growth and low-cost production of generics, as patents on major branded drugs are set to expire.

It is not so much a concern about the downside, but about how we maximize the opportunity. Folder Title Folder Description Save. Innovation From Book to Bank: The year of the last action hero.

A ‘Bigger Foothold’: What Does the Abbott-Piramal Deal Mean for Indian Pharma?

Abbott has been operating in India for of its years, and has popular pharmaceutical brands including the antacid Digene and painkiller Brufen. In addition, a tie-up with the Canadian Pension Plan has seen it invest their money in residential real estate in India.

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According to Abbott, this deal further accelerates Abbott’s emerging markets growth following the recent acquisition of Solvay Pharmaceuticals and announcements last week of Abbott’s collaboration with Zydus Cadila as well abbogt the creation of a new stand-alone Established Products Division to focus on expanding the global markets for its leading branded generics portfolio.

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Abbott to pay $ billion for unit of India’s Piramal | Reuters

According to Abbott statement, branded generics have significant brand equity in many international markets, providing durable, sustainable franchises for future growth. Only fill in if you are not human. Think Live Work Play. In financial services, Abnott, through its Piramal Fund Management Division, provides comprehensive financing solutions to real estate companies.

The deal, subject to Piramal Healthcare shareholder approval, is expected to close in the second half of It will, however, continue research in drug discovery through an affiliate company. Abbktt guide to choosing the best books on business.

He finds himself in an enviable position of sitting on capital at a time when the economy is going through some stress. Login from existing account Facebook Google Email.

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. That is pitamal reason pharmaceutical multinationals are doing deals with the relatively small number of well established Indian companies that have met international standards in manufacturing.

Many view private equity firms as villainous actors intent on the singular goal of profit. Drug prices to rise as MNCs increase India play.

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

Read Post a comment. More than one voice suggested the company return a part of the cash to its shareholders. 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.


Wharton professor of healthcare management Patricia Danzon agrees. For consumers, the great value in generics is getting it cheaper. On Friday, Piramal Healthcare stocks went up to Rs Ajay Piramal, however, reiterated that he was dea, exiting the business.

The Indian drug maker, which itself has made 15 acquisitions sinceinsists it will remain in the industry and invest in the remaining business.

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 pirama. Unlike other pharmaceutical acquisitions that have been targeted at buying Indian generic capacity to service Western and emerging markets, the Abbott-Piramal deal is primarily focused on the domestic market, according to Mumbai-based business magazine Business India.

Fortunately for me, there are plenty of those in Asia at the moment. Reliance to buy majority stake in renewable energy services firm Kanoda. In the years sincePirmal Enterprises has proved adept at taking advantage of opportunities for its cash. The wait for Mallya to go on Election effects: Sign up for the weekly Knowledge Wharton e-mail newsletter, offering business leaders cutting-edge research and ideas deaal Wharton faculty and other experts.

Sumeet ChatterjeeBharghavi Nagaraju. Related Videos ET Now: It makes a lot of sense if they can pull off all the integration issues.