Piramal Healthcare denies reports of Glaxo, Sanofi bid
07 Feb 2009
Piramal Healthcare, flagship of the Piramal Group, has refuted reports that pharmaceutical giants, including GlaxoSmithKline Plc and Sanofi Aventis SA, are in race to acquire it for around $1.5 billion.
''It has come to our attention that certain sections of the media have been speculating about a potential sale of the company. We would like to clarify that this is totally unfounded,'' Piramal Healthcare said in a clarification.
The Wall Street Journal quoted people close to the developments as saying that Glaxo is in talks to buy Piramal Healthcare for "roughly $1.5 billion".
The report said Piramal may sell its generic prescription drugs and chemical ingredients business, among others.
"Piramal has a current market value of about $820 million. Its shares in India has fallen sharply during recent market turmoil," the report said, adding, several other companies were also looking at acquiring Piramal Healthcare.
The reports, however, said things are now at an early stage and the issue is not likely to be resolved soon. Talks are at an early stage and could still fall apart.
Besides healthcare, Generic drug maker Piramal Healthcare, has interests in biotechnology, diagnostics and glass manufacturing and healthcare.
Pharmaceutical MNCs like Glaxo and others are using the acquisition route to enter overseas markets because of the slow pace of drug sales in mature markets like the US and Europe.