• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Mumbai, Oct. 25 Sun Pharma is scanning acquisition opportunities in the US, with the global financial meltdown resulting in more attractive valuations of generic drug companies, Sun Pharma’s Chairman and Managing Director, Mr Dilip Shanghvi, told analysts.

The acquisition plan comes even as Sun Pharma’s acquisition of Israeli drug-maker Taro sits mired in multi-country litigation. The size of the possible US acquisition will be impacted by developments on Taro, Mr Shanghvi said, adding that no targets had been identified yet.

Sun would look at businesses that would create additional value, he said, without giving details on the size of the business they were looking at.

With Sun Pharma’s $454-million proposal to acquire Taro still stuck in litigation in Israel and New York, Mr Shanghvi said that they were concerned on the impact of the delay and uncertainty on the financial health of Taro. Further, he added, Taro needs to clarify on how the banks would deal with debts on which the company had defaulted, given the current global financial scenario.

Nevertheless, he added that Sun Pharma remained committed to the acquisition, although it could “dis-engage” from the deal, if they indeed chose to.

Meanwhile, the company’s management said that a one-time sales and profit component linked to the sales of products that had a limited-duration exclusivity in the US, coupled with growth across business segments, buoyed the profits of Sun Pharma for the three months ended September 30, 2008.

Sun Pharma sells “at risk” generic heart-burn drug Protonix and cancer-related Ethyol in the US.

Responding to queries on the impact of the US financial scenario on the demand for medicines, he said the company did not see a reduction in the consumption of medicines and that the demand for generic medicines was expected to increase.

The company’s US generics sales at $122 million were up 195 per cent over the second quarter last year.

More Stories on : Mergers & Acquisitions | Overseas Investments | Pharmaceuticals | Sun Pharmaceutical Industries Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line