Bafna draws buyout interest for its European-approved manufacturing

Manufacturing facilities in India that are approved by Western regulators are a hot commodity, and that is what Bafna Pharmaceuticals has. The Indian drugmaker is for sale and is reportedly drawing interest from potential buyers, including Mylan ($MYL) as well as some Indian drugmakers.

Bafna Pharmaceuticals, which makes generic drugs and hemoglobin products, has two manufacturing facilities which are approved by regulators in Europe, the U.K. and Australia. The company plans on seeking approval from the U.S. FDA. Sources tell The Economic Times that owners in the company have seen their investments dwindle in recent months as the economy in India has slowed. The company reportedly had debt of about RS 100 crore ($16 million).

"There continues to be interest in Indian pharmaceutical sector because of domestic growth as well as export capability," said Mehul Savla of boutique investment bank RippleWave Equity. "We will see more such activities in future, especially where companies have good export facilities."

Mylan already has a huge presence in India and is in the process of finishing up its $1.6 billion buyout of Agila Specialties, the injectable drug business of Strides Arcolab. There have been reports that India's generics leader Ranbaxy Laboratories was in the market to buy an FDA approved facility after U.S. regulators in September banned its last of three FDA-approved plants in India from exporting to the U.S. because of manufacturing issues. India's Wockhardt has had a plant in India banned by the U.S. and other plants banned from exporting to Europe.

- read the Economic Times story