Top global pharma players in fray for Paras

British giant GlaxoSmithKline, France's Sanofi-Aventis, Swiss multinational Novartis, and US-based Johnson and Johnson have submitted bids for Ahmedabad-based Paras Pharmaceuticals, the over-the-counter drug major, the Business Standard reported citing unnamed sources.

PE investors Actis Advisors and Sequoia Capital India Advisors jointly hold 70 per cent in the privately-held Paras Pharma. Promoter Girish Patel and his family hold the rest. According to sources, the PE investors were looking at around 30 times Ebitda numbers as enterprise valuation.

The paper said that initial bids ranged between $600 and $700 million dollars which is lower than the expected $1 billion valuation mark, according to a source quoted by the newspaper.

It quoted sources as saying that Japan's Taisho Pharmaceuticals are among other serious contenders that are expected to join the fray.

Paras owns several popular Indian brands like anti-cold medication D'Cold and pain-relieving ointment Moov. The report said that with players like Taisho in the fray, domestic FMCG companies like Emami and Dabur are not expected to bid.

Earlier personal-care products maker Emami Ltd was reported to be keen on acquisition of the unlisted personal care firm (See: With Paras Pharma keen to sell, Emami ready to buy)

The OTC portfolio of Paras had grossed revenues of Rs400 crore in 2009. The company is expected to gross over Rs500 crore in top line and roughly Rs120 crore in earnings before interest, tax, depreciation and amortisation (Ebitda) in 2010.

The Indian drugs market including OTC products is expected to grow 15-20 per cent annually over the coming years. The Indian market is valued fourth by volume and 13th in terms of value.