Healthcare - India M&a
ASSIGNMENT SUBMISSION FORM
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Course Name: IHSS
Assignment Title: Term-Paper Submitted by: (Student name or group name)
Group Member Name Asawari Sathaye Prateek Trivedi Pushkin Jaitly
PG ID 61310409 61310088 61310376
(Let us not waste paper, please continue writing your assignment from below)
1
ABSTRACT
The last decade has seen significant consolidation in the Indian Pharmaceutical Industry driven by acquisition of large Indian generic manufacturers by top global pharmaceutical firms (such as Piramal’s and Ranbaxy’s takeover by Abbott and Daiichi Sankyo respectively). The Indian pharmaceutical industry is worth $4.5bn today and is growing at 15%+.It presents several attractive opportunities for global pharmaceutical companies. First, it gives them access to the developing world. Given the fragmented nature of the industry it is an enormous task for a company to set-up operations from scratch. An acquisition gives them customer base and distribution network. Second, it gives them cheap manufacturing facility/ labour. A third reason could be product integration – it gives the acquirers a basket of generics that they can promote in the global market. This paper also looks at the issue of patent expiration. There are a couple of companies working on the M&A format either to take over a R&D division of another company or looking at expanding their global footprint by leveraging the distribution, supplier, and intellect network of the acquired company. We will also be analyzing some instances of Indian companies acquiring foreign pharma companies. Again, the main driver of such acquisitions seems to be the desire to expand domestic generic business to international markets by leveraging the distribution networks of established companies. This paper will try to uncover some of these motivations and discuss how the companies have been faring post acquisition as also what were some of the key growth drivers
Treat this as the first page of your assignment
Course Name: IHSS
Assignment Title: Term-Paper Submitted by: (Student name or group name)
Group Member Name Asawari Sathaye Prateek Trivedi Pushkin Jaitly
PG ID 61310409 61310088 61310376
(Let us not waste paper, please continue writing your assignment from below)
1
ABSTRACT
The last decade has seen significant consolidation in the Indian Pharmaceutical Industry driven by acquisition of large Indian generic manufacturers by top global pharmaceutical firms (such as Piramal’s and Ranbaxy’s takeover by Abbott and Daiichi Sankyo respectively). The Indian pharmaceutical industry is worth $4.5bn today and is growing at 15%+.It presents several attractive opportunities for global pharmaceutical companies. First, it gives them access to the developing world. Given the fragmented nature of the industry it is an enormous task for a company to set-up operations from scratch. An acquisition gives them customer base and distribution network. Second, it gives them cheap manufacturing facility/ labour. A third reason could be product integration – it gives the acquirers a basket of generics that they can promote in the global market. This paper also looks at the issue of patent expiration. There are a couple of companies working on the M&A format either to take over a R&D division of another company or looking at expanding their global footprint by leveraging the distribution, supplier, and intellect network of the acquired company. We will also be analyzing some instances of Indian companies acquiring foreign pharma companies. Again, the main driver of such acquisitions seems to be the desire to expand domestic generic business to international markets by leveraging the distribution networks of established companies. This paper will try to uncover some of these motivations and discuss how the companies have been faring post acquisition as also what were some of the key growth drivers
References: 1. Interview with Abbott Senior Director, Mr. Vivek Mohan 2. Global Pharmaceuticals Mergers and Acquisitions: Report by Cygnus Bunisness Consulting and Research 3. Indian Pharma 2015 – McKinsey & Company 4. New dimensions in M&A regulatory framework – Grant Thornton and Assocham India 5. The Indian Pharmaceutical Industry: Collaboration for Growth– KPMG 6. Indian Healthcare Sector: A Galore of Scope and Opportunity – MegStrat Consulting 7. Mergers & Acquisitions 2012 – Global Data 8. India’s New Opportunity 2020: BCG 9. Annual Reports of the following companies: • • • • • • • • • • • • • • Dr Reddy’s Abbott – Piramal – Betapharm – Taro SunPharma DRG AxiCorp Biocorp Sanfofi Aventis Shantha Biotech RECKITT BENCKISERPARAS PHARMA DAIICHI SANKYO-RANBAXY 25