Team Blitz India
NEW DELHI: Big Indian pharmaceutical companies have built up a war chest close to Rs 30,000 crore ($3.5 billion), amassing wealth for acquisitions to get entry to new markets, as per a Hindu Businessline report.
Last week, Mankind Pharma approved raiding Rs 7,500 crore and increased its borrowing limit to Rs 12, 500 croreto prepare for ‘big and small acquisition’ opportunities when they presented themselves.
It is reportedly one of the contenders for buying Bharat Serums and Vaccines. Cipla’s management said in its earnings call that it was willing to consider large acquisitions in India that would fill gaps in its therapy segment and consolidate its leadership position. In the US, it is looking for product-specific opportunities.
The cash surplus with pharma companies has been consistently rising from FY21 onwards to reach the current figure of around Rs 28,100 crore or 15 per cent of the capital employed, according to data by Ambit Capital Research.
