Merck eyeing lab media company

German pharma and laboratory chemicals giant Merck Specialties is scouting for strategic acquisitions in India to complement its laboratory media and catalogue business in the country and also to make India a global sourcing centre. The multinational giant is learnt to have initiated talks with the Mumbai-based HiMedia Laboratories and a few other companies for strategic investment, said sources close to the development.

The sources said HiMedia Lab had been valued at a much higher enterprise value, equivalent to more than three-four times of its current revenue of Rs 150 crore by Merck.

"Earlier, two other global companies "� Sigma and Fischer both based in the US "� had also looked at HiMedia Lab for a complete acquisition," the sources added. Merck sources were not available for comments.

HiMedia Laboratories is a domestic catalogue company specialised in laboratory chemicals and microbiological culture media. Catalogue business (a one-stop provider of the entire product range used in pharma and biotechnology research and quality assurance labs) in the pharmaceutical and biotechnology industry is currently a fast-emerging concept in the country following its strong and wider acceptance in the global markets.

HiMedia Laboratories has a strong presence in this area overseas and also in the domestic market with its broad portfolio of laboratory products used in the pharmaceutical and biotechnology research and quality assurance. The company is currently competing with global majors like Merck, Sigma and Fischer in the international markets.

HiMedia Lab executives, when contacted, declined to comment on the development. Market sources said HiMedia Lab may not be interested to exit from the business immediately.

Recently, HiMedia Laboratories had entered into a joint venture distribution agreement with the US-based VWR International Inc., a leader in the global research laboratory industry to support the chemicals and laboratory supplies requirements of the rapidly expanding pharmaceutical and biotech industry in India.

With this distribution agreement, HiMedia will be the strategic partner to VWR to brings its wide range of products to Indian laboratory market and the latter will be an exclusive distributor for HiMedia innovative product line of Hi-Veg micro biological and cell culture media for North America.

HiMedia Laboratories, with six manufacturing facilities in India, has a workforce of over 450 people in India and a research and development centre Nashik in Maharashtra.

HiMedia Laboratory , a thirty year old research and manufacturing company catering mainly to the biotechnology R&D and quality assurance market, has its own products in the chemicals and test media substances segment, and also has a wide vendor network for sourcing laboratory accessories.