Categories : History

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.

Author: Groshicage Jum
Country: Mayotte
Language: English (Spanish)
Genre: Art
Published (Last): 17 June 2017
Pages: 251
PDF File Size: 18.20 Mb
ePub File Size: 1.66 Mb
ISBN: 527-2-39792-143-9
Downloads: 9753
Price: Free* [*Free Regsitration Required]
Uploader: Nejar

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

Unilever’s Bargain Offer Economic Milestone: Increased funding expands the scope for drug research, but that alone is not enough; other pieces have to fall in place, Piramal notes. Infibeam calls off pact to acquire Snapdeal unit Unicommerce. Shares in Mumbai-based Piramal closed Dwal entered into financial services focused on real estate. Reliance to buy majority stake in renewable energy services firm Kanoda. But new Wharton research provides better insight into the benefits of PE buyouts.

Sensex finishes year above 36, posts third straight annual gain. There are a limited number of Indian generics companies that are dea, and there might be considerable competition for them.

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.

Abbott, which will fund the transaction with cash on the balance sheet, says, the deal will be conducted through its wholly-owned subsidiary. 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. Help us delete comments that do not follow these guidelines by marking them offensive.

Danzon adds that the emerging business plan for generics companies is essentially around selling to pharmacists, not physicians.


BOis booming as governments battle rising healthcare costs. Industry forecaster IMS Health predicts leading emerging markets will show annual pharmaceuticals sales growth of 14 to 17 percent throughagainst just 3 to 6 percent a year for developed markets. The fund will not be restricted to any specific asset class but it would be fair to say that stressed sectors like steel, roads and real estate would find their way in the fund.

Sign up for the weekly Knowledge Wharton e-mail newsletter, offering business leaders cutting-edge research and ideas from Wharton faculty and other experts. On top of that, India is a growing market.

Abbott To Acquire Piramal Healthcare Unit For $3.72B

In, after divestiture the company decided to foray into healthcare business. The Abbott-Piramal deal is the latest in a wave of consolidation within the global pharmaceutical industry over the past few years.

Its other businesses include third-party manufacturing and pathology laboratories. Pieamal Abbott-Piramal combine reports to him, but he notes it will be run as a standalone business unit after the merger takes effect later this year. That is one reason pharmaceutical multinationals are doing deals with the relatively small number of well established Indian companies that have met international standards in manufacturing. Bringing the bazaars home. Ajay Piramal, however, reiterated that he was not exiting the business.

In the same year, Piramal Enterprises started anbott non-banking financial company focused on lending to real estate, education, and hospitals. It exited the investment in April with a 52 percent gain. 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.

For MNCs, emerging markets, with their cheaper generic medicines, are turning out to be the new battleground, given that most are witnessing stalled sales in Western markets.

Seven years after Piramal deal, Abbott way off revenue target | Business Standard News

Nationalisation of Banks Cadbury’s worms of graft: All Comments Your Activity. Abbott has been operating in India for of its years, and has popular pharmaceutical brands including the antacid Digene and painkiller Brufen. It also has a strong presence in the OTC segment in India. In the years sincePirmal Enterprises has proved adept at taking advantage of opportunities for its cash.


In the past few years, they have realized that those pipelines are running dry, and are trying to diversify.

The 10 big questions for – Part 2. Also, Piramal’s barnds have presence across the emerging markets.

As quantum of funds was available that time for existing businesses, The company decided to diversify into new businesses.

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.

Piramal’s Healthcare Solutions business pirakal become part of Abbott’s newly created, abott Established Products Division. These other players are not even interested in doing that. Abbott will add branded generic drugs from the Piramal portfolio, including Phensedyl, one of the top two pharma brands in the country. Additional Reading Pira,al Finding the Virtue in Private Equity Firms Many view private deaal firms as abgott actors intent on the singular goal of profit. According to Abbott statement, branded generics have significant brand equity in many international markets, providing durable, sustainable franchises for future growth.

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 collaboration includes medicines for pain, cancer and cardiovascular, neurological and respiratory diseases, with product launches beginning in For consumers, the great value in generics is getting it cheaper. Sumeet ChatterjeeBharghavi Nagaraju.

Share on Facebook Share on Twitter. As on 31 st March 54 33 Market Cap 7,