Piramal deal will give Abbott India size Piramal, who is the chairman of Piramal Healthcare, said “the valuation of about nine times shows the. It took four hours for Ajay Piramal to negotiate a whopping $ billion valuation for his generics business with Abbott. Just how did he pull it off. Abbott to pay $ billion for unit of India’s Piramal Disagreements over valuation have prevented more deals from getting done. Abbott.

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Since then, further pharmaceutical deals have been expected, as global majors search for growth and low-cost production of generics, as patents on major branded drugs are set to expire. Disagreements over valuation have prevented more deals from getting done.

Shares in Mumbai-based Piramal closed Globally, Abbott also faces the pressure of playing catch-up with its bigger rivals. Food and Drug Administration charged the Indian dael with numerous violations on quality and safety fronts, and banned some of its drugs.

Get instant notifications from Economic Times Allow Not now. Innovation From Book to Bank: The potential to expand with very high priced specialty products is seriously limited. BOthe U.

Mumbai-based Piramal said it would consider paying a special dividend and would use deal proceeds to invest in its remaining businesses and pay down debt. Abbott and other Big Pharma companies face the twin challenges of slow growth in the developed markets and liramal product pipelines that are getting harder to replenish with newer, blockbuster drugs, according to Chaudhuri.

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At the same time, hopes have receded of a wholly Indian pharmaceutical major emerging as a global player. As a global MNC, Abbott does. On top of that, India is a growing market.

Indian companies can hope to become truly global pharmaceutical companies only through drug discovery, says Piramal.

Danzon adds that the emerging business plan for generics companies is essentially around selling to pharmacists, not physicians. Log In or sign up to comment.

A ‘Bigger Foothold’: What Does the Abbott-Piramal Deal Mean for Indian Pharma? – [email protected]

It makes a lot of sense if they can pull off all the integration issues. Sign up for the weekly Knowledge Wharton e-mail newsletter, offering business leaders cutting-edge research and ideas from Wharton faculty and other experts. It is increasingly a preferred choice for infrastructure and real estate developers as well. These other players are not even interested in doing that.

Its other businesses include third-party manufacturing and pathology laboratories. Piramal Healthcare also retains custom manufacturing, over-the-counter consumer products, diagnostic medical devices and services and clinical research, among other activities.

Abbott to pay 17K crore for Piramal generics business

Your Reason has been Reported to the admin. BOis booming as governments battle rising healthcare costs. Of its brands sold on Friday, at least 48 have sales of more than Rs 10 crore a year and are marketed by a sales force of 4, who reach more than 2. Will be displayed Will not be displayed Will be displayed. Several other deals abbottt over the past one year. The Abbott-Piramal deal is the latest in a wave of consolidation within the global pharmaceutical industry over abbottt past few years.


There are a limited number of Pirakal generics companies abbktt are attractive, and there might be considerable competition for them. BOas global drugmakers look to boost their presence in emerging markets. Wharton professor of healthcare management Patricia Danzon agrees. Unlike other pharmaceutical acquisitions that have been targeted at buying Indian generic capacity to service Western and emerging markets, the Abbott-Piramal deal is primarily focused on the domestic market, according to Mumbai-based business magazine Business India.

But investors remain disappointed in the absence of an open offer.

Many view private equity firms as villainous actors intent on the singular goal of profit. It is paying roughly 8. Are you a Business Owner? Yet, Piramal investors are disappointed.

Wharton management professor Saikat Chaudhuri says the relatively higher valuation makes sense for Abbott.