India's Cadila Healthcare could soon be expanding. It's emerged as the leading horse in a race to acquire the generic sterile injectables business of Claris Lifescience, and it's reportedly putting the finishing touches on a deal.
Cadila and its target are currently engaged in last-minute due diligence talks, according to The Economic Times, and word has it a formal announcement will arrive in early June. When it does, Cadila will likely be handing over a significant premium, valuing the company between Rs 3100 crore and Rs 3400 crore ($487.8 million and $565 million)--about 22 times EBITDA, the publication notes.
If a deal does go down, it wouldn't be the first in the sterile injectables space as of late. Earlier this week, Endo ($ENDP) agreed to fork over $8 billion for Par Pharmaceutical, looking for access to its growing injectables portfolio. Back in February, Pfizer ($PFE) inked a $15 billion pact for injectables specialist Hospira ($HSP), a move that bulked up its established products unit. And a year prior, Mylan ($MYL) inked a $1.6 billion deal for Agila Specialties, the sterile injectables unit of Indian drugmaker Strides Arcolab.
It also wouldn't be the first move for Cadila this year. In March, it picked up Bharat Serums and Vaccines' 50% stake in the pair's joint venture, making Zydus BSV its wholly owned subsidiary.
- get more from The Economic Times
- get FiercePharmaManufacturing's take
Special Report: Pharma's top 10 M&A deals of 2013 - Mylan/Agila Specialties