| "Merck's generic business is such a big asset and we cannot ignore it, if it is up for sale. We neither confirm our interest nor deny it," a Dr Reddy's spokesperson said. He declined comment on whether the company is in discussion with private equity funds for the acquisition. |
| Sources in Sun Pharma and Wockhardt said the companies were yet to take a decision on attempting a bid. |
| The acquisition is likely to be valued over $ 5 billion. Ranbaxy and Cipla have already disclosed their interests in acquiring the company in partnership with private equity funds. |
| Pharma analysts note that the Indian pharma company managements will have to seriously look at the generics business of Merck, as very few generic companies in the world match its size, distribution platforms, geographical reach and technologies. |
| "The managements of Indian pharma companies will have to discuss Merck's generic business, whether they attempt for the acquisition or not, as the deal could change the generics landscape forever. Most generic companies try to build up scale through acquisitions, which is the easiest route in generics business. |
| They will have to consider how their business would be impacted if Cipla, Ranbaxy or any other Indian company succeeds in acquiring it," noted Rajiv Shukla, head, life science practice, Avendus Advisors. Merck's generics business had sales of ¤1.82 billion ($2.35 billion) last year, with leadership position in countries such as Australia, France and Scandinavia. |
| The company also has subsidiaries in UK, Spain, Sweden and Belgium. Merck's Generics has major operations and facilities in Australia, Belgium, Canada, Germany, Italy, Netherlands, South Africa, Spain, UK, Sweden and USA. It is currently ranked among the top-ten global suppliers in the generics market and has a wide range of more than 400 products in all therapeutic areas. |
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