Advent International, U.S. drugmaker Baxter and fellow Indian pharma Torrent Pharmaceuticals are all seeking to buy injectables specialist Gland Pharma.
This is according to three people with direct knowledge of the matter speaking to the news wire Reuters.
Gland Pharma founders--and 96% owners KKR--are selling their combined stake, which is valued at between $1 billion and $1.5 billion, the people said. The sources declined to be identified as the deal talks are confidential. None of the companies said to be involved are willing to comment on the rumors.
Hyderabad-based Gland Pharma specializes in making injectables and a shortage of these types of meds in recent years has driven up prices, thus sparking investors’ interest.
Indian manufacturers have however come under a tough time in recent years from the U.S. after an increase in FDA inspections has seen the regulator come down hard on those firms failing to live up to its manufacturing rules.
But there is still a positive outlook for drugmakers in the country--which is a major supplier to the world with the U.S. as its largest export market--thanks predominately to its lower manufacturing and labor cost.
- check out the Reuters story