Domestic drugmaker Dr Reddy’s Laboratories (DRL) has declined to comment on market speculation that it was in the fray for a stake in fellow drugmaker Cipla.
Hyderabad-based DRL is the second domestic player cited in relation to Cipla promoters’ reported plans to sell their stake in the company. Earlier, Gujarat-based Torrent Pharma was said to have shown interest, including cobbling together a consortium to make its bid.
In a clarification to BSE, DRL said it would not comment on market speculation and “there is currently no such event or information which requires a disclosure under Regulation 30 of the SEBI Listing Regulations”. It was responding to a report that private equity firm Bain Capital had approached DRL for a joint bid for the promoters’ stake in Cipla.
Interestingly, it appeared to business-as -usual at Cipla, which inked a deal to acquire South Africa’s Actor Holdings (Pty) Limited for $48.6 million (about Rs 402 crore) on Monday. The move strengthened Cipla’s over-the-counter (OTC) products portfolio in the region.
PE play
Torrent Pharma is no stranger to domestic acquistions, having pulled off several recently, including Elder Pharma and Unichem. Last year, it picked up Curatio Healthcare for Rs 2,000 crore, seen to be an expensive buy. But industry watchers told businessline that it could help Torrent Pharma build its presence in the domestic pharmaceutical market and the cosmetic dermatology segment.
Cipla doyen Dr YK Hamied had recently told shareholders that reports on the family’s exit were “speculative” . However, in the absence of an outright denial, reports continue to emerge on PE bids.
DRL shares were down 1.4 per cent at Rs 5,582 on the BSE, Tuesday 13.36 pm; Cipla’s shares were marginally down at Rs 1,237.90; and Torrent Pharma’s shares were up 1.56 per cent, at Rs 1,856.90.