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Sun looking for acquiring a generic firm in US

Its bid to acquire Israel's Taro may be stuck in legal wrangles, but Mumbai-based Sun Pharmaceutical is on the prowl to acquire a mid-size generic company in the US with a view to increase its share in the world's biggest pharma market.

business Updated: Feb 01, 2009 23:23 IST

Its bid to acquire Israel's Taro may be stuck in legal wrangles, but Mumbai-based Sun Pharmaceutical is on the prowl to acquire a mid-size generic company in the US with a view to increase its share in the world's biggest pharma market.

"We are looking at acquisition in the US, which could give us a return of around 20-22 per cent on our investments," Sun Pharmaceutical Industries Chairman and Managing Director Dilip Shanghvi said.

The company currently has a cash of around Rs 2,600-2,700 crore, which Shanghvi said, is likely to be used for inorganic growth opportunities in the US generic market. He said with the on-going economic recession, Sun is expecting for a good opportunity there.

"With the current state of capital, currency and consumer market, there are likely to be several reasonably priced acquisition opportunities worth evaluating," Shanghvi said, however, added that there were no immediate proposals. Asked about possible size of acquisition, he said: "We are interested in a relatively mid-sized company."

The company already has a business in the US through its subsidiary Caraco and going forward it is looking to increase its market share in the US through both organic and inorganic route.

Sun is currently locked in litigation in Israel and in the US with Israeli drug firm Taro Pharmaceuticals over the issue of 454 million dollar merger agreement, which was unilaterally terminated by the Israeli firm.