Belying markets reports, Mumbai-based “Moneycontrol.com” of Mumbai, quotes Regent Drugs managing director V.K. Batra as saying that Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) may not go in for any acquisitions in the Indian pharmaceuticals sector at least for the next couple of years, Regent Drugs Ltd. is a Teva subsidiary.
Since Teva entered India three years ago, market source have mentioned many Indian companies as potential acquisition targets for Teva. One name mentioned was Matrix Laboratories Ltd., which was ultimately acquired by Teva competitor Mylan Laboratories Inc. (NYSE:MYL) for $736 million.
Batra said, "From a four-unit entity at the time of acquisition, we have now grown to seven units. We have ample scope for substantial expansion at the existing location, which has close to 67 acres of infrastructure available. From a $11-million size at the time of acquisition, we have now grown to $40-million with around 70% growth year-on-year. We expect to reach a size of around $60-million by next year."
Batra concluded by saying that the company's focus in India would be active pharmaceutical ingredients (API) generics and was committed to pump $7-8 million per annum into manufacturing and R&D activities. “Though we are not keen on inorganic growth at least for the next couple of years, I cannot rule of the possibility of an Indian acquisition if highly exciting opportunity comes up.”
Published by Globes [online], Israel business news - www.globes.co.il - on September 19, 2006
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