Ranbaxy close to acquiring German research firm

Drug major Ranbaxy Laboratories (RLL) has zeroed in on a research-based pharmaceutical company in Germany as part of its inorganic growth plan in Europe.

Ranbaxy, which is in the process of due diligence, would soon sign a primary agreement with the company to acquire a controlling stake, said a source close to the deal.

A Ranbaxy official said the company was looking at a R&D-focused company in Germany as it was keen to expand its portfolio in that market.

"Currently, talks are on through our recently acquired German subsidiary. However, since the right valuation is always a critical issue, we cannot confirm the developments in the process at this point of time," he added.

The source said the company, as per its current acquisition plan in Europe, was targeting companies with strong research capability and discovery pipeline.

"RLL was even looking at companies bigger than it abroad to fulfill the targeted growth globally. The company was even in the race for IVAX along with Sandoz and Teva," the source said.

The German acquisition is likely to be funded through internal accruals as the total budget for the buyout may not be in excess to the funds raised internally, said the source.