Fortis Healthcare to raise Rs 1,000 crore through rights issue

Fortis Healthcare CEO & MD Shivinder Singh on Christmas day announced plans to raise Rs 1,000 crore through a rights issue.

The money would be used to fund the company’s greenfield projects and restructure the balance sheet, besides being utilised for other investment opportunities.The share ratio and issue price of the rights issue would be finalised by February-end.

The company is setting up a medicity in Gurgaon and three new hospitals in Mumbai, West Delhi and Gurgaon. Fortis’.Last year, Fortis Healthcare raised Rs 496 crore through its maiden public issue and the promoters currently own 74.4% in the company. At present, Fortis Healthcare has 23 hospitals and plans to increase it to 40 hospitals by 2011.


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Zydus Cadila buys Dutch firm Etna Biotech

Ahmedabad-based pharma major Zydus Cadila on Tuesday said it has acquired Etna Biotech, a subsidiary of the Dutch biopharma company,Crucell. This is the sixth foreign acquisition by Zydus in the last five years. The company has not divulged the details of the deal.

In an official statement issued by the Zydus Cadila CMD Pankaj Patel said: “This acquisition will help us to be in the forefront in the innovation for vaccine research and development. The deal marks company’s first acquisition in the research space and offers the group a highly evolved research platform for developing new vaccines and technology.”

Zydus, the Rs 2,300-crore company is striving for a strong foot-hold in the lucrative vaccines market. The global vaccine industry is expected to grow by 18% by 2010, which is roughly three times the growth of the global pharmaceutical industry. The company would look at scaling up its vaccine products, as the newly-acquired research oriented company will provide cost advantage, sources said.

Last month, the group received WHO accreditation for rabies vaccine. So far Zydus had only a few products in vaccines segment through collaborations which were more for marketing other vaccines. The only vaccine that the company owned is the rabies vaccine - Lyssavac N.

Actis Biologics taps PE firms to raise Rs 125 cr

Actis Biologics (India) is close to finalising a deal with private equity (PE) players to sell 15% stake. The company is in advanced stages of discussions with three foreign players to raise Rs 125 crore through issue of fresh shares, said Actis Biologics CEO Sanjeev Saxena.

Actis Biologics had recently purchased a technology ‘Liv1’ and is looking to set up an office in the US, for which these funds would be used. Actis has already invested $10 million in its R&D lab in Mumbai. The company plans to launch its new technology ‘VFF2’ in 8-10 months.

Govt approves Daiichi-Ranbaxy deal

India has approved Daiichi Sankyo's stake purchase in the country's top drug maker by sales, Ranbaxy Laboratories, the finance ministry said in a statement on Wednesday.

Japan's Daiichi has agreed to buy a 34.8 per cent stake in Ranbaxy and aims to take up to 20 per cent more from the open market in deals worth up to $4.6 billion. The Japanese drug maker will also make an open offer to buy up to 20 per cent of shares in another Indian firm, Zenotech Laboratories, which is 47-per cent owned by Ranbaxy.

Dr. Reddys to increase its stake in the company

Domestic pharma major Dr Reddy's Labs has said that a promoter group firm Dr Reddy's Laboratories Holdings Pvt Ltd has increased its stake in the company to 22.82 per cent through open market purchase.Dr Reddy's Holdings Pvt Ltd acquired 1,95,348 equity shares representing 0.11 per cent stake in the company through open market transactions, Dr Reddy's Labs said in a disclosure to the Bombay Stock Exchange.

The market purchase of shares, for an amount of about Rs 11.36 crore, was conducted through DSP Merrill Lynch.However DSP Merrill Lynch has no stake in Dr Reddy's Holdings Pvt Ltd.

Pursuant to the acquisition, the holding company's stake in Dr Reddy's Labs has increased to 22.82 per cent.At the end of June, Dr Reddy's Holdings held 22.46 per cent stake in the company.

Actis to raise Rs 125 cr from 15% stake sale to PE firms

Actis Biologics (ABPL), the Indian arm of US-based biotech drug discovery company Actis Biologics Inc, plans to raise about $30 million by selling stake to a clutch of private equity players to build two new plants and market a new process that will help other drug makers cut cost.The company will sell a 15 per cent stake to US- and Europe-based leading private equity investors. The sale may be completed in the next four weeks.

Private equity investors are keen to invest in drug discovery companies having a good pipeline of products since a successful new drug could reap more revenues from global sales.

The deal would be structured to reduce a 15 per cent shareholding across shareholders of ABPL. Actis Biologics Inc holds 30 per cent equity in ABPL. The promoters' group led by Sanjeev Saxena has another 35 per cent, while contract research company Innovasynth holds 26 per cent and the rest is with private investors such as Walchand Industries.

Read more in The Business Standard article.

Dr Reddy's to buy BASF drug contract manufacturing unit

Drugmaker Dr Reddy's Laboratories Ltd has agreed to acquire BASF's drug contract manufacturing business and a related facility in the United States for an undisclosed amount.

The Hyderabad-based company said the deal was likely to be completed by June, subject to regulatory approvals. BASF's contract manufacturing business makes generic prescription and over-the-counter products for branded and generic companies in the United States.

The business had revenue of $43 million in 2007, it said. "The acquisition ... will enable us to strengthen our supply chain for North America and provide a strong platform for pursuing additional growth opportunities," Satish Reddy, managing director of Dr Reddy's, said in the statement.

Strides Arcolab acquires 17.7% more in Genepharm Australasia

Strides Arcolab has acquired over 17.7 per cent in ASX-listed Genepharm Australasia under a share acquisition agreement with a group of Cyprus-based shareholders that are associated with Genepharm's largest shareholder, Genepharm Asia Pacific Enterprises.

Strides will vend its Australian and Asian business in exchange for the issue of shares in Genepharm.Including the existing 2.1 per cent of Genepharm shares over which Strides currently has a relevant interest, the transaction takes Strides' total relevant interest in Genepharm issued shares to 19.8 per cent.

On successful completion of the Genepharm transaction, Strides may emerge with a shareholding of 55 per cent of the expanded capital base of Genepharm.The combined regional businesses are expected to have revenue of A$ 100 million on closing of the Genepharm transaction.

The purchase consideration for the acquisition of Strides' Australian and Asian operations has been reduced from A$65.0 million to A$61.0 million, with Genepharm proposing to assume A$4.1 million of existing debt within the business.The issue price of the shares paid to Strides as purchase consideration is A$0.55 per share compared to the original price of A$0.60 per share, reflecting Genepharm’s recent trading results and share price performance.

Nicholas buys K-Lab brands for Rs 116 cr

Pharma major Nicholas Piramal India (NPIL) has entered into a definitive agreement with Mumbai-based Khandelwal Laboratories (K-Lab) to acquire its Anafortan and CEFI drug brands for Rs 116 crore.

Under the agreement, K-Lab will allow NPIL the use of certain patents with non-compete assurances for the two cefixime and Camylofin based drugs. The two drug groups generated revenues of Rs 49.1 crore, with operating margins of Rs 20.7 crore for the financial year ended March 31, 2008.

CEFI (cefixime) is a third generation cephalosporin antibiotic and K-Lab’s CEFI group is marketed in India in nine dosage forms. Its CEFI-XL and CEFI-OD, are based on extended release and once-a-day drug delivery systems.

K-Lab has won patents from the Indian Patent Office for these delivery systems. The CEFI group had revenues of Rs 26.2 crore for the year ended March 31, 2008.

Read more in The Business Standard article.

Morgan Stanley picks up stake in Orchid for Rs 9 cr

Morgan Stanley and Co International has acquired 3.30 lakh shares of Orchid Chemicals at a price of Rs 269.83 each in a bulk deal at the BSE, information available on the exchange showed.

The latest acquisition of Orchid Chemicals shares come on the heels of speculations of its takeover from a Ranbaxy promoter group firm.

Earlier, Solrex Pharmaceuticals, a privately-held firm, picked 14.7 per cent through a slew of block deals in Orchid Chemicals taking it very close to triggering an open offer and making Orchid, in which promoters have less 16 per cent stake, vulnerable to a hostile takeover bid.For the quarter ended March 31, 2008, the promoters held 15.87 per cent stake in the firm.

Biocon to buy US firm for $400 mn: Report

India's top biotechnology firm, Biocon Ltd, is in talks to acquire a US firm in a deal valued at $400 million to boost its overseas pharmaceutical distribution network.

Biocon which makes insulin, cholestrol-lowering statins and other branded drugs bought 70 percent of German marketing firm Axicorp GmbH for 30 million euros ($47 million) in February to boost its distribution network in Europe.

No hostile intentions on Orchid: Malvinder

In a new twist to the Ranbaxy-Orchid takeover drama, Ranbaxy Laboratories CEO Malvinder Singh on Wednesday said his company had no hostile takeover intentions.For the third day in succession, Mr Singh, however, declined to comment on the relationship between Ranbaxy Laboratories and Solrex Pharmaceuticals, the company that has mopped up 12% in the Chennai-based Orchid Chemicals from the secondary market.

However, if Mr Singh’s statement is taken on face value, it means that the threat of a hostile takeover of Orchid has receded for now. It is unlikely that with a 12% stake, Ranbaxy Laboratories or Solrex will be content with being just a financial investor in Orchid.

The buzz on the Street is that Ranbaxy will engage in discussions with the Chennai-based drugmaker for an amicable takeover or some sort of strategic alliance, which could include a contract manufacturing tie-up.

Mr Singh declined to comment on whether the company plans to buy more Orchid shares or strike an alliance with it. When asked to react to Mr Singh’s statement that India’s largest drugmaker has no hostile takeover intentions, Mr Rao said: “I don’t have any comment to offer at this point in time. I cannot share my strategy at this stage.

Read more in The Economic Times article.

Dr Reddy's to acquire part of Dowpharma business

Dr Reddy's Laboratories has entered into a definitive agreement with Dow Chemical Company to acquire a portion of Dowpharma Small Molecules business associated with its United Kingdom sites in Mirfield and Cambridge.

The financial terms and conditions of the transaction are not being disclosed at this point in time. The transaction is scheduled to close on April 30, 2008 pending regulatory approval.

The acquisition will include the relevant business, customer contracts, associated products, process technology, intellectual property, trademarks as well as the transfer of the facilities at Mirfield and Cambridge in the UK. The two sites and the business employ around 80 people. Dr. Reddy's will also have a non-exclusive license to Dow's Pfenex Expression Technology for biocatalysis development.

Aurobindo acquires Italian generic company

The Hyderabad-based Aurobindo Pharma has acquired TAD Italy, a generic Italian company with 70 ready to market products. The acquisition will help Aurobindo enter into the Italian generic market, in a big way.The size of the deal was not disclosed.

During the integration process, Aurobindo expect to derive maximum synergies from the acquisition by shifting the manufacturing of TAD's products to its own facilities in Hyderabad, the company said in a press release.

Nicholas Piramal may offer research arm stake to PEs

Mumbai-based drug major Nicholas Piramal India (NPIL) is in talks with private equity funds for the sale of a ‘small’ stake in its research company, to be soon renamed Piramal Life Sciences. Piramal Life Sciences will be listed in India in the first or second week of June.

The company is seeking funds for its recently spun-off research company to mitigate the risks and costs involve in new drug development. The move may also allow the company to license out its new molecules at a later stage of development and, therefore, extract more value from its research.

Three independent reports published by Lehman Brothers, Enam and Kotak Securities have valued the pipeline of drugs under development at the research entity between $480 million and $540 million.

Read more in
The Economic Times article.

Vivimed lab close to buying German firm

Hyderabad-based Vivimed Laboratories, a business-to-business speciality chemical and pharmaceutical manufacturer, is close to buy the cosmetics and related ingredient manufacturing division of a German multinational specialty chemical and pharmaceutical company.According to sources Vivimed will add to its fold three units of the German company, located in Germany.

The three units, which include a research and development centre, currently manufactures about 45 products with a turnover of $30-40 million. Vivimed was negotiating with the German company since last year to take over the brands, existing business and intellectual property rights of that division, they said.

Read more in The Business Standard article.

Vivimed Labs nears buys in US, Europe

Hyderabad-based Vivimed Labs is close to acquiring two speciality chemical companies in the US and Europe.It will pay $40 million for the European company and $25 million for the other.

Vivimed will acquire only the brands, intellectual property and customers of the company. Manufacturing assets and employees will remain in the parent company. The European company is expected to add over 10% to the revenues in the first year of operations. Vivimed will integrate the company with its Indian operations by shifting manufacturing to the country.

Read more in The DNA Money article.

Sequoia Capital invests Rs 100 cr in GVK Bio

Global private equity player Sequoia Capital has invested Rs 100 crore in Hyderabad-based contract research organisation GVK Biosciences. The company plans to use the money to fund acquisitions in the CRO space and also add to its existing capacities.

The investment comes close on the heels of Sequoia picking up an 18% stake in Hyderabad-based CRO SAI Advantium, signaling the PE major’s interest in the contract research space.

Part of the funds raised will also be used to finance the company’s new campus being built at Mallapuram near Hyderabad at a cost of Rs 60 crore. The investment would be made in a phased manner. The plan is to expand capacities in chemistry and informatics on the drug discovery front.

Read more in The Economic Times article.

Wockhardt buys Morton Grove for $38 mn

Pharmaceutical and biotechnology major Wockhardt has acquired US-based Morton Grove Pharmaceuticals, a speciality pharmaceutical company, for $38 million as against an enterprise valuation of $58 million.

Morton Grove is a leading liquid generic and speciality dermatology company, having a sales revenue of $52 million.The company provides entry into the US generic market with a portfolio of 31 products, 13 of which occupy the No. 1 market position. All others are in the Top 3.

The company said the acquisition would boost its US revenue by providing a complete range of dosage forms right from tablets, capsules, liquids to injectibles. The acquisition would take the overall the product range to around 54 products for the US market, of which 23 products are currently being marketed by Wockhardt USA.

Read more in The Business Standard article.

Cadila to buy European firm at $80 mn

Gujarat-based Cadila Pharmaceuticals is close to buying an European company that specialises in neurology and opthalmology medicines. The deal, said to be valued at $80 milllion (about Rs 320 crore), will be announced soon.

A Cadila executive said that the acquisition would enhance the company’s marketing capabilities in Europe. This will be Cadila’s second overseas facility. Last month, the company had invested $15 million (about Rs 60 crore) to set up a joint venture facility in Ethiopia.

As a part of its agressive growth plans, Cadila will develop a state-of-the-art medicine production facility at its pharma special economic zone (SEZ) coming up near Ahmedabad.

Read more in The Business Standard article.