Torrent Pharmaceuticals to make announcement of Unichem acquisition today
03 November 2017
Pharma major Torrent Pharmaceuticals Ltd is expected to announce a possible acquisition of the domestic business of Unichem Laboratories today. Both the companies are holding their respective board meetings today.
According to market-watchers, the deal said to be the largest in the pharma sector is expected to be valued at over Rs3,000 crore.
Market speculation of the acquisition of Unichem, the oldest pharma company has been rife. According to commentators Torrent Pharma seems to be a suitable buyer.
In a recent exclusive interview to BusinessLine Torrent Pharma executive chairman Samir Mehta had said that the company was keen on a 'Elder Pharma' type of expansion in India, besides others in markets like the US.
In 2013, the company had acquired Elder's domestic business and also its business in Nepal for more than Rs2,000 crore.
Mehta said while India is a "preferred geography for acquisitions", "We are more keen on pursuing the inorganic opportunities in India and the US....The move that enhances our existing capabilities and future opportunities and also helps us scale up the business presence."
According to commentators, inorganic growth comprises an important part of Torrents' growth strategy besides product innovation and market expansion.
Unichem's rich portfolio of cardiovascular drugs, which include Losar, is expected to add to Torrent Pharma's existing offering.
News about the promoters looking to sell the domestic business of Unichem has been doing the rounds for the past three years with some of the top names of top pharma companies including Mylan, Abbott, Sanofi, Teva, and even Pfizer, being cited as possible suitors.
Unichem's stock prices had hit a 52-week high of Rs338.6 a share earlier this week over reports of Torrent Pharmaceuticals' acquisition of its domestic business.
Unichem has been promoted by Prakash Amrut Mody, who holds a controlling 50.06-per cent stake along with his family, while public shareholding is 49.94 per cent.