Piramal deal will give Abbott India size Piramal, who is the chairman of Piramal Healthcare, said “the valuation of about nine times shows the. It took four hours for Ajay Piramal to negotiate a whopping $ billion valuation for his generics business with Abbott. Just how did he pull it off. Abbott to pay $ billion for unit of India’s Piramal Disagreements over valuation have prevented more deals from getting done. Abbott.

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But new Wharton research provides better insight into the benefits of PE buyouts. Disagreements over valuation have prevented more deals from getting done. Now, Piramal on its own has that opportunity.

That is one reason pharmaceutical multinationals are doing deals with pirzmal relatively small number of well established Pirajal companies that have met international standards in manufacturing. Are you a Business Owner? Shares in Mumbai-based Piramal closed Mr Piramal did not say what he will do with the remaining money.

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

It allows Abbott to commercialize two dozen Zydus Cadila drugs in 15 emerging markets. As a global MNC, Abbott does. It is not so much a concern about the downside, but about how we maximize the opportunity. 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.

Mexico, for example, is in the process of changing its regime to require generics to be bioequivalent, she says.


Never miss a great news story! My Saved Articles Sign in Sign aabbott. Sign up for the weekly Knowledge Wharton e-mail newsletter, offering business leaders cutting-edge research and ideas from Wharton faculty and other experts. Abbott said it was advised by Morgan Stanley, while Piramal said it did not have a financial advisor on the deal.

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 Deak.

This is no different for Chinese firms. This will alert our moderators to take action. Growth Through Overseas Expansion Globalization is not just for manufacturers.

A ‘Bigger Foothold’: What Does the Abbott-Piramal Deal Mean for Indian Pharma? – [email protected]

Several other deals occurred over the past one year. Its other businesses include third-party manufacturing and pathology laboratories. 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.

Food xbbott Drug Administration said in February Ranbaxy sold misbranded or adulterated drugs in the United States, its largest market, having earlier banned imports of over 30 generic drugs from the dwal.

There is intense speculation that Mr Piramal will buy companies in some of these segments. Abbott and other Big Pharma companies face the twin challenges of slow growth in the developed markets and maturing product pipelines that valaution getting harder to replenish with newer, blockbuster drugs, according to Chaudhuri.

Choose your reason below and click on the Report button. Wharton professor of healthcare management Patricia Danzon agrees. Some said prices of medicines will go up. Sumeet ChatterjeeBharghavi Nagaraju. On top of that, India is a growing market.


The stigma of selling—that has been holding back promoters of Indian pharmaceutical companies—is gone after two large lucrative deals in the sector, said an investment banker who asked not to be named. According to Wharton faculty and industry experts, changing global business models and the resources needed to valution blockbuster drugs are propelling Indian companies to join forces with multinationals through strategic alliances or as targets for acquisitions. These other players are not even interested in doing that.

But that is also changing, she says. The chunk of Piramal Healthcare being sold has a 4. Get instant notifications from Pirxmal Times Allow Not now You can switch off notifications anytime using browser settings.

Mr Piramal said he would pay a special dividend and pare debt, but otherwise declined to say much on how he planned to use the ahbott. Country Garden, one of the largest and most successful vertically integrated real estate[…].

The Indian unit of Abbott, which is a listed company, has a 2. You have to create a whole organization, and that takes time.

BOis booming as governments battle rising healthcare costs. Read more on Piramal. It is paying roughly 8. Increased funding expands the scope for drug research, but that alone is not enough; other pieces have to fall in place, Piramal notes.