Is the Cipla play Torrent Pharma’s cowboy moment?

The quiet, conservative Ahmedabad-based drug maker is ready to pledge family silver to acquire a rival many times its size. The question is whether it can survive its ambition.

When news first broke out that Cipla’s promoters led by Yusuf Hamied wanted to sell their stake, no one envisaged that the buyer could be an Indian company. Mumbai-based Cipla is India’s third biggest drugmaker worth over $12 billion in market capitalization and buying it could cost a cool $5 billion in cash.

India’s largest players like Sun Pharmaceuticals, Dr Reddy’s Laboratories and Abbott Healthcare weren’t likely suitors as their businesses replicated a lot of what Cipla did. There is little interest in Indian companies from overseas companies after the biggest Indian deal between Ranbaxy and Japanese firm Daiichi ran …

Author

T Surendar

Surendar helps lead the newsroom at The Morning Context as executive editor. Over the years, Surendar has worked in industries from pharmaceuticals to diamonds, as well as a stint as an equity analyst. In his long career as a business journalist, he has led teams at The Times of India, India Today and Fortune India. He was part of the founding team at Forbes India and interned at and published in The Times, London.

Executive Editor

surendar@mailtmc.com

Mumbai