| SHOPPING ABROAD | ||
| 2005 | ||
| Acquirer | Target | Sum ($ mn) |
| Dr Reddy's | Roche's Mexican API unit | 59.00 |
| Nicholas Piramal | Avecia Pharma | 16.25 |
| Jubilant | Trinity | 12.30 |
| Torrent | Heumann | 30.00 |
| Matrix Labs | DocPharma | 263.00 |
| Ranbaxy | Efarmes Sa | 18.00 |
| Dishman | Synprotec | 3.48 |
| Strides Arcolab | Strides Latina | 16.00 |
| TOTAL | 418.03 | |
| 2004 | ||
| Hikal | Marsing | 5.90 |
| Psi Supply | 16.50 | |
| Wockhardt | Epharma | 13.30 |
| Dr Reddy's | Tirgenesis | 11.00 |
| Glenmark | Labs Kilinger | 5.20 |
| Zydus Cadila | French formulation unit of Apharma | 9.41 |
| Ranbaxy | RPG Aventis | 80.00 |
| TOTAL | 155.31 | |
Even smaller companies like Jubilant Organosys, Torrent and Dishman Pharma pierced the national boundaries this year. "Indian companies now have global ambitions. Some of them have reached a scale where they have to grow inorganically to keep pace with rivals," said D S Brar, chairman, GVK Biosciences.
WestBridge Capital Partners' managing director, Sandeep Singhal, views this an attempt by Indian companies as "a move to the next level".
Acquisitions also provide the shortest route to market access. A front end (marketing) in the West and back end (manufacturing bulk drugs and formulations or research) in India make good business sense.
Moreover, as Kaul points out, "'size matters in the generics industry, which is like any other commodity space." In a rapidly consolidating industry, the companies that do not attain the critical size will be left behind.