Indian Pharma Global Acquisition

In the early 2000s, Indian pharmaceutical companies went on a mad acquisition spree
of significant assets in the United States and Europe for high valuations, later causing
financial problems for many of them. Thus, now-days Indian pharma companies are
cautious in acquiring small assets and brands for relatively more minor valuations that fit
their business growth plans without straining their balance sheets, unlike in the past.

According to VCCEdge, a data and intelligence platform, Indian healthcare companies

spent $4.32 billion on mergers and acquisitions (M&A) from January to June 2022,
compared to $2.02 billion over the same period in the previous year.

The international acquisition market of France has recently grown in appeal for Indian
pharmaceutical enterprises. Other Indian pharmaceutical firms, including Unichem
Labs, Wockhardt, and Sun Pharma, are in purchase discussions with French generic
businesses following the acquisitions of RPG Aventis by Ranbaxy and Al Pharma by
Zydus Cadila.

Gland Pharma, a producer of injectables with headquarters in Hyderabad, is the most

recent to join the group of Indian buyers. To grow its contract development and
manufacturing business in Europe, it purchased French Contract Development &
Manufacturing Organization (CDMO) Cenexi Group on November 29 for 20 million
Euros or about 1,000 Crores. The company Cenexi manufactures ampoules, vials, and
other sterile injectables. Four production facilities, including three in France and one in
Belgium, make up its presence in Europe.

The French government's initiatives to lower healthcare expenses for its inhabitants by
promoting higher usage of generic medications contribute significantly to this
bullishness. Government reimbursement for healthcare is already quite substantial;
therefore, patients and doctors have little motivation to reduce their use.

The Organization for Economic Co-operation and Development (OECD) recently

conducted a survey that found that while medicines accounted for more than 10% of
overall health spending in most countries, they accounted for over 20% of healthcare
spending in France.

France has been working to hold onto its solid position as the world's third-largest
manufacturer of medicines on a national level despite a challenging economic
environment.
According to European industry comparisons, French pricing is around 15% less
expensive than those in the United Kingdom and Germany.
Additionally, businesses may target other critical European markets after establishing a
foothold in France. According to Dr. V V L N Sastry, country head for First Call India
Equity Research, "French regulatory norms are on par with the global standards. Thus,
a manufacturing base in France may also cater to other key European nations."

By- Gaurav Gugnani, Nidhi Mittal

Sources-

● https://www.fortuneindia.com/enterprise/whats-behind-indian-pharma-cos-global-
acquisition-spree/110585
● http://test.pharmabiz.com/news/indian-pharma-cos-on-acquisition-spree-in-france-23554