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.

Religare may buy another London-based brokerage

Religare Enterprises, a Ranbaxy-promoted group company, is looking at buying yet another London-based broking firm, for around Rs 700 crore.Though the name of the firm could not be established, sources close to the developments said talks are in the initial stages.

Sources said the proposed acquisition is likely to increase the scope of Religare’s institutional broking business.This move comes close on the heels of Religare’s 100 per cent acquisition of London-based investment banking firm Hichens, Harrison & Co for about Rs 400 crore through its subsidiary Religare Capital Markets Ltd.The listed entity is being acquired through a mix of equity and debt.

Read more in The Business Standard article.

Religare eyes up to $35 mn via IPO

Religare Enterprises has set a price band of Rs 160-185 per share for its initial public offer, the financial services firm said in a statement.

At upper end of the band, the firm, which is selling 7.57 million shares, would raise Rs 1.4 billion ($35 million).

Enam Financial Consultants and Citigroup are advising Religare, founded by the the owners of Ranbaxy Laboratories.Merrill Lynch has bought a 5 per cent stake in the firm.

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Merrill arm buy 5% in Religare

Global financial services player Merrill Lynch has bought a five per cent stake in Religare Enterprises, a Delhi-based financial services-cum-brokerage outfit, for about Rs 60 crore through its subsidiary Indopark Holdings.

The deal values Religare Enterprises, which has filed a draft document for an initial public offering (IPO), at about Rs 1,212 crore. The IPO is likely to hit the market by this month-end.

Indopark Holdings will get 37,88,050 shares post-IPO and these shares will have a lock-in period of one year, as stipulated by the Securities and Exchange Board of India (Sebi) rules.

Religare Enterprises, which is promoted by the Ranbaxy group founders, is planning to raise close to Rs 150-160 crore through the IPO.Religare Enterprises is the holding company for all its businesses, with its subsidiaries, Religare Securities, Religare Wealth Management Services, Religare Capital Markets and Religare Insurance Broking, among others.

DLF to doctor you with Fortis

Ahead of its initial public offer, real estate giant DLF has entered into an agreement for floating a joint venture with Ranbaxy group company Fortis Healthcare to set up hospitals across the country with about Rs 6,200 crore of investments.

Fortis Healthcare Managing Director Shivinder Singh said that Fortis will have a majority holding with 74 per cent stake and the rest will be with DLF in the proposed joint venture.

Industry sources said an agreement for the proposed JV has already been signed.

The JV plans to set up a chain of 200-450 bed hospitals in 31 cities in India within three to five years, the sources added.

The planned investment of Rs 6,200 crore would go toward meeting cost of land, construction and medical equipments, the sources said.

Read more in The Economic Times article.

Fortis dips 9 pc in debut trade on BSE

Ranbaxy promoter group company Fortis Healthcare on Wednesday dipped 9.35 per cent in its debut trade on the Bombay Stock Exchange and settled at Rs 100.The company's shares witnessed a high of Rs 109.10 and a low of Rs 97.90, while more than 1.37 crore shares exchanged hands on the BSE.

On the National Stock Exchange, Fortis Healthcare touched a high of Rs 110 and a low of Rs 98.05. Over 2.29 crore shares got traded during the day.The scrip was listed at Rs 105, nearly 3 per cent below its issue price of Rs 108, on BSE. The shares were listed with marginal premium at Rs 110 over its issue price on NSE, but later pared some gains and ended the day at Rs 100.

The firm entered the bourses with 22.66 crore equity shares of Rs 10 each at an issue price of Rs 108 each.Its IPO Healthcare was subscribed 2.78 times with bids for over 12.74 crore shares against about 4.57 crore shares offered in the public issue

Fortis plans to expand hospital network

Fortis Healthcare, promoted by the Singh family of Ranbaxy, plans to expand its network to 40 hospitals within three years by either acquiring new facilities or setting up greenfield projects. The investment in these projects, primarily in western and southern India, will be over Rs 1,000-Rs 1,500 crore. Fortis, at present, runs 12 corporate hospitals in north India.

A source close to the development said, in another one or two years, Fortis would set up a network of five to six hospitals in Mumbai. This would be either through a takeover of existing facilities or through strategic alliances with reputed trust-run hospitals. Fortis is also evaluating the option of starting green field projects in Mumbai.

Further, the company is in advanced negotiations with the Mumbai-based real estate major Hiranandanis to manage their proposed hospital projects. A memorandum of understanding is being worked out by the partners.

Confirming this, a Hiranandani spokesperson said they are planning five to 10 hospitals within the next five years, though yet to finalise the locations. Fortis has already set its foot in Mumbai recently by acquiring the Hiranadani hospital project at Vashi in Navi Mumbai for over Rs 25 crore.

Read more in The Business Standard article.

Ranbaxy targets $2b US sales from generic brands

Pharma major Ranbaxy Laboratories is expected to mop up nearly $2 billion in sales by launching generic versions of four block-buster drugs, including atorvastatin (Lipitor) over the next five-six years.

The block-buster molecules including atorvastatin (lipitor), pioglitazone (actos), valacyclovir (valtrex) and tamsulosin (flomax), are expected to be launched in US during 2007-2012, subject to the requisite legal and regulatory approvals.

At present, the company has 20 First-to-File (FTF) products that command a market size of over $26 billion (at innovator brand prices) with nine under litigation. The first-to-file status is granted to the first generic company which files the abbreviated new drug application (ANDA) with a Para IV certification. The first-to-file benefit allows 180 days of exclusivity in the US market to the company.