Piramal deal will give Abbott India size Piramal, who is the chairman of Piramal Healthcare, said “the valuation of about nine times shows the. It took four hours for Ajay Piramal to negotiate a whopping $ billion valuation for his generics business with Abbott. Just how did he pull it off. Abbott to pay $ billion for unit of India’s Piramal Disagreements over valuation have prevented more deals from getting done. Abbott.

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You have to create a whole organization, and that takes time. Since then, further pharmaceutical deals have been expected, as global majors search for growth and low-cost production of generics, as patents on major branded drugs are set to expire.

Many view private equity firms as villainous actors intent on the singular goal of profit. abbot

Abbott to pay $3.7 billion for unit of India’s Piramal

Disagreements over valuation have prevented more deals from getting done. Foul piranal Slanderous Inciting hatred against a certain community Others. Are you a Business Owner?

This is no different for Chinese firms. All the same, the West continues to dominate pharmaceutical innovation, and companies in India and other emerging markets could play a supportive role, according to Danzon. Sign up for the weekly Knowledge Wharton e-mail newsletter, offering business leaders cutting-edge research and ideas from Wharton faculty and other experts. But that is also changing, she says.

It is not so much a concern about the downside, but about how we maximize the opportunity. The Abbott-Piramal combine reports to him, but he notes it will be run as a ppiramal business unit after the merger takes effect later this year.


It will, however, continue research in drug discovery through an affiliate company. Globalization is not just for manufacturers.

Abbott to pay 17K crore for Piramal generics business – The Economic Times

At the same time, hopes have receded of a wholly Indian pharmaceutical major emerging as a global player. Unlike other pharmaceutical acquisitions that have been targeted at buying Indian generic capacity to service Western and emerging markets, the Abbott-Piramal deal is primarily focused on the domestic market, according to Mumbai-based business magazine Business India.

It is increasingly a preferred choice for valuuation and real estate developers as well. There is intense speculation that Mr Piramal will buy companies in some of these segments. To see your saved stories, click on link hightlighted in bold.

The potential to expand with very high priced specialty products is seriously limited. My Saved Articles Sign in Sign up. Abbott and other Big Pharma companies face the twin challenges of slow growth in the developed markets and maturing product pipelines that are getting harder to replenish with newer, blockbuster drugs, according to Chaudhuri.

Danzon adds that the emerging business plan for generics companies is essentially around selling to pharmacists, not physicians.

BOas global drugmakers look to boost abbott presence in emerging markets. Food and Drug Administration charged the Indian company with numerous violations on quality and safety fronts, and banned some of its drugs. Abbott said it was advised by Morgan Stanley, piramxl Piramal said it did not have a financial advisor on the deal. Abbott plans to fund the deal with cash on its balance sheet and said it would not change its pieamal outlook for Mr Piramal did not say what valuaton will do with the remaining money.


The stigma of selling—that has been holding back promoters of Indian pharmaceutical companies—is gone after two large lucrative deals in the sector, said an investment banker who asked not to be named.

Mr Piramal said he would pay a special dividend and pare debt, but otherwise declined to say much on how he planned to use the bonanza. Industry forecaster IMS Health predicts leading emerging markets will show annual pharmaceuticals valuatioj growth of 14 to 17 percent throughagainst just 3 to 6 percent a year for developed markets.

Shares in Mumbai-based Piramal closed These other players are not even interested in doing that. Yet, Piramal investors are disappointed. Several other deals occurred over the past one year. Based in Abbott Park, Ill. Pigamal will alert our moderators to take action Name Reason for reporting: Chaudhuri acknowledges those new realities, but with a patriotic tinge.

Choose your reason below and click on the Report button. Country Garden, one of the largest and most successful vertically integrated real estate[…].

By comparison, Cipla trades at about pirsmal. NIFTY 50 10,