MNC and Indian companies in race to acquire Paras Pharma

Mohini Bhatnagar
29 April 2003

Mumbai: Multinational and Indian pharma companies are showing interest in acquiring a stake in the Rs 190-crore Ahmedabad-based Paras Pharmaceuticals. These include pharma giants Novartis and Pfizer.

Fast-moving consumer goods (FMCG) company Godrej Consumer Products is also said to be interested. Novartis has confirmed that it is interested in acquiring a stake in Paras Pharma.

Last year Paras Pharma itself had evinced interest in multinational drug majors Pfizer, Novartis and Glaxo acquiring a stake in its equity. The promoters of Paras Pharma are said to be hoping for a price between 2.5 and three times its declared annual sales of Rs 190 crore.

Paras Pharma sources say the company is also considering various options including the outright sale of the business or brands, or taking in a strategic partner.

Apart from pharmaceuticals, Paras Pharma is present in cosmetics and healthcare products, though its leading brands Moov, Krack and D''cold are medicines. Paras Pharma''s top brands will attract drug companies with interest in the consumer healthcare business.

Pfizer is present in the over-the-counter (OTC) drugs business with Benadryl cough syrup, Gelusil antacid and Listerine mouthwash, while Novartis has a presence in consumer healthcare with products like calcium supplement Calcium Sandoz.