According to two people close to the matter, Takeda is in discussions with Cipla and Lupin about purchasing the pharmaceutical business of one of the Indian companies, The Economic Times reported Wednesday. One of the sources noted that Takeda is very keen on an acquisition in the country, but there is no certainty that the talks will lead to a deal.

Negotiations with Lupin have progressed beyond the initial stage, the sources said, while preliminary negotiations have been held with Cipla. However, Cipla spokesperson Antara Mukherjee said "we are not in talks with anyone either to sell our company or any of its brands."

Takeda is reportedly interested in purchasing Lupin's domestic formulations business, as well as its research facility. However, one of the people with knowledge of the situation indicated that the drugmaker, which generated revenue of $1.5 billion in fiscal 2011, is unwilling to sell the research facility and is insisting on a price that values the company at 17-times revenue.

In response to the report, a Lupin spokesperson said that "as a policy, [we] do not comment on baseless market speculation." In July, sources suggested that Lupin was considering a sale of its Indian pharmaceutical unit, which could fetch at least $1 billion.

Centrum Capital analyst Ranjit Kapadia remarked that India "is a big market for global pharma giants," where, according to consultant firm McKinsey & Co, domestic sales are expected to grow from $12 billion now to $55 billion by 2020.


(Ref: FOX Business, The Financial Express, livemint.com, The Economic Times, CNBC)