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This is an archive article published on March 14, 2007
Ranbaxy, Cipla bid for Merck146;s 6 bn generics
Top drug firms Ranbaxy and Cipla have submitted bids for acquiring the generic business of German pharmaceutical giant Merck KGaA which is valued at around 6 billion.
Top drug firms Ranbaxy and Cipla have submitted bids for acquiring the generic business of German pharmaceutical giant Merck KGaA which is valued at around 6 billion.
8220;We are looking to evaluate the asset and we are going to be very practical about it. We are not in a rat race for acquisition but are focused on creating value for shareholders in the best way we can,8221; Ranbaxy CEO Malvinder Singh said in a statement here. Reacting to reports that the company had put in a 6 billion bid, a Ranbaxy spokesperson said: 8220;We have made a bid but at a price not disclosed.8221;
Cipla is also believed to have put in its bid for the fourth largest generic company in the world. When contacted, company officials were unavailable for comment. Merck is the fourth biggest generic drug manufacturer in the world and Novartis AG, Stada Arzneimittel AG as well as world8217;s largest generic firm Teva are reportedly in the race. Gurgaon-based Ranbaxy has appointed Goldman Sachs and Citigroup as its managers for the deal, sources said.
The German company is hiving off its generic unit to concentrate on branded formulations. Earlier, another Indian company Dr Reddy8217;s Laboratories was also in the race but it had pulled out citing over-evaluation.
Shares of Ranbaxy declined nearly one per cent to Rs 320.65, while the Cipla scrip rose 1.57 per cent at Rs 236.35 at the close of trading on Bombay Stock Exchange.
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