| Sun Pharmaceuticals is scouting for acquisitions in the US generic drugs market with a $450 million (around Rs 2,000 crore) war chest. |
| A Sun Pharmaceuticals executive confirmed the company was on the prowl in the US. "However, no significant progress had been made because valuations in the US market have gone through the roof," he added. |
| Sources close to the development said Sun Pharmaceuticals was sitting on reserves of over $50 million, which it raised through foreign currency convertible bonds over a year ago. The company will use this to fund its US acquisitions. The balance will come from internal accruals. |
| Sun Pharmaceuticals has a wholly owned subsidiary, Caraco Pharma Labs, in the US and acquired the assets of another US company, Able Laboratories, for $23.5 million (around Rs 106 crore) last month. |
| "The company is open to all options. It is not necessary that the company will opt for a single deal. There could be multiple acquisitions,'' Sun Pharmaceuticals sources said. |
| Able Labs has manufacturing facilities for generic drugs in tablet, capsule, liquid and controlled release forms. |
| Sun Pharmaceuticals plans to revalidate some of Able Labs' products. This acquisition is in line with Sun Pharmaceuticals' strategy of raising its presence in the US generic drugs market and focusing on difficult-to-manufacture generics. |
| In India, Sun Pharmaceuticals is dominant in fast-growing therapeutic segments such as cardiovascular diseases, diabetes, and gynaecology. |
| The company is raising its presence in the international generic drugs market and plans to earn half its revenue from there, up from 15 per cent now. |
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