M&As expected in Indian pharma industry in 2013: Report

The Indian pharma industry to gather more stream in 2013, says a research report.


Mumbai, January 13, 2013: The Indian pharma industry is expected to see more action as far as the M&As in the industry is concerned during 2013, said a report from Avendus Securities.


"Besides inorganic initiatives, the industry is also stepping up its organic investments, as it moves to create building blocks for the future," said Monica Joshi, Analyst, Avendus Securities in a report.


It is worth mentioning here that over the last three years i.e. before the flurry of M&As started during the second half of FY 2012-13, the pharma sector did not see any deals of considerable size.


The five big Indian pharma majors, namely, Cipla, Cadila Healthcare, Dr Reddy’s, Lupin and Sun Pharma have on an average proposed 2.2  per cent of their combined average m-cap in FY 2012-13 on acquisitions. It may be noted here that the estimated value of new acquisitions by five frontline companies is estimated at 2.2 per cent of the total market capitalisation.


Apart from acquisitions, the Indian pharma industry has also increased its organic investments. At the same time, the capital deployment by the industry is at its highest level (from FY 2006-07 to FY 2012-13).


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