Who said the M&A game is played mainly by the big boys and the whiz kids of financial services? Welcome to the exciting new world of pharma predators gobbling up small fish as a strategic move. By manish k. pandey
How long can one stay away from a predator whose darting hungry eyes constantly wait for the prey to let loose from its drove? Not long. And if the prey happens to be the one with distinctive qualities, ideal enough to quench his insatiable appetite and of course the taste buds too, how can he miss a gift horse in the mouth? It’s just that he is hanging around for the right time and conditioning himself for the final hunt. Time arrives, one pounce and it’s in!
This seems more like a scene from a film on predators, but trust us, that’s exactly the situation where the Indian Pharmaceuticals industry appears to be heading right now. A situation where each kill means a lot, & each swallow makes a summer!
It was just last week, when Ragvendra Rao, Managing
Director, Orchid Chemicals and Pharmaceuticals Ltd, sitting in his Chennai office, was trying to escape a takeover attempt from Solrex Pharmaceuticals, a surprise raider that quietly mopped up an 11.4% stake (taking the total holdings to around 14.9%) in Orchid, getting further close to Rao’s own stake (around 17%) in the firm. Many believed it to be a front for Ranbaxy, India’s largest drug-maker, attempting an acquisition. But the Gurgaon-based drug major denied and said that it doesn’t believe in hostile takeovers. And, while this South India based drug manufacturer was finding a way out, way up in north, Anand Burman-led Dabur Pharma was readying itself for a sell-off to Fresenius Kabi, a German healthcare firm, looking to consolidate its presence in India. It looked as if the predators had marked their preys and were just waiting for the final grab!
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Source : IIPM Editorial, 2008
How long can one stay away from a predator whose darting hungry eyes constantly wait for the prey to let loose from its drove? Not long. And if the prey happens to be the one with distinctive qualities, ideal enough to quench his insatiable appetite and of course the taste buds too, how can he miss a gift horse in the mouth? It’s just that he is hanging around for the right time and conditioning himself for the final hunt. Time arrives, one pounce and it’s in!
This seems more like a scene from a film on predators, but trust us, that’s exactly the situation where the Indian Pharmaceuticals industry appears to be heading right now. A situation where each kill means a lot, & each swallow makes a summer!
It was just last week, when Ragvendra Rao, Managing
Director, Orchid Chemicals and Pharmaceuticals Ltd, sitting in his Chennai office, was trying to escape a takeover attempt from Solrex Pharmaceuticals, a surprise raider that quietly mopped up an 11.4% stake (taking the total holdings to around 14.9%) in Orchid, getting further close to Rao’s own stake (around 17%) in the firm. Many believed it to be a front for Ranbaxy, India’s largest drug-maker, attempting an acquisition. But the Gurgaon-based drug major denied and said that it doesn’t believe in hostile takeovers. And, while this South India based drug manufacturer was finding a way out, way up in north, Anand Burman-led Dabur Pharma was readying itself for a sell-off to Fresenius Kabi, a German healthcare firm, looking to consolidate its presence in India. It looked as if the predators had marked their preys and were just waiting for the final grab!For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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