Posted by : Varun Doshi
On : 18 February 2015
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City-based Cipla Pharma; Hyderabad's Natco and US drug maker Mylan are among the companies in the run to buy select brands of Sun Pharma that have been put up for sale by the companies as per an order of the Competition Commission of India.
The total value of the seven drugs is estimated to be close to Rs 137 crore according to data available with All India Organisation of Chemists and Druggists Association. These drugs are in the category of chronic therapy ranging from antidepressants to heart disease drugs.
Other interested players include Intas pharma and Emcure. A consultant closely involved with the sale process said the deal could complete in a month's time. A Cipla spokesperson declined to comment on specifics but said that it continues to look for assets to expand its business.
"As a pharmaceutical company we are constantly in discussions with multiple parties on potential collaboration opportunities - in line with our aspiration to drive access and ensure availability of high quality, affordable medicines." A Sun spokesperson said that the divestment process is under way. "The divestment process is currently in progress as per the CCI order. However, it will be premature to discuss specific details," it added. Mylan officials could not be reached for a comment.
The official said it is unsure if CCI will allow them to buy the brands. Sun Pharma last year announced the acquisition of Ranbaxy pharma for $3 billion, making it the largest drug maker in India with a total sales of nearly Rs 9000 crore in the Rs 80,000 crore industry.
Source: ET Bureau