Lupin, Torrent zero in on Bayer's biz

Dermatology segment of Bayer's portfolio is valued at $1 bn

Drug makers Lupin, Torrent and Cadila Healthcare are considering making bids to acquire Bayer’s dermatology business, valued $1 billion.

A Bloomberg report on Tuesday said the Indian drug companies are weighing offers with a view to grow their dermatology portfolio. Sun Pharmaceutical Industries, too, is in the race, along with top pharmaceutical companies and private equity firms.

Bayer is looking to divest its dermatology business ahead of a $66-billion acquisition of Monsato.

Dermatology is an area of focus for top drug makers in the country. Recently, Sun Pharma announced a tie-up with Almirall for development and commercialisation of a new drug to treat plaque psoriasis. For Lupin, too, dermatology is an area of focus and the company has 20 product filings in the US.

A Lupin spokesperson declined comment. Torrent Pharma spokespersons, too, were not available for comment.  

Last year, Torrent had acquired Zyg Pharma, which was a part of the Mumbai-based Emcure group. It specialises in dermatological formulations.

In January 2015, Torrent had raised close to Rs 10,000 crore by issuing securities and had said that it is open to acquisitions to fuel its growth. At the time, the company told Business Standard that funds would be used to refinance existing borrowings, as well as organic and inorganic growth.

Torrent had acquired the domestic business of Elder Pharma in December 2013, a deal which gave it access to new therapeutic areas in which it was looking to expand its presence.

Cadila Healthcare Chairman and Managing Director Pankaj Patel had, in an interview to Business Standard earlier this year, said the company is open to both product acquisitions as well as bigger acquisitions in the US market.

It has acquired the animal health business of Zoetis and some brands from Albert David earlier this year, and is making smaller acquisitions in the domestic space to plug the gaps in the therapeutic categories.

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With Bloomberg inputs

 

DEAL STREET

• Sun Pharma recently announced a tie-up with Almirall for development and commercialisation of a new drug
   
• Torrent had raised close to Rs 10,000 cr and had said it is open to buyouts
   
• Torrent had last year acquired Zyg Pharma, which was a part of the Mumbai-based Emcure group
   
• Cadila Healthcare, earlier this year, said it was open to both product buyouts as well as bigger acquisitions in the US market