India's Torrent Pharma is in Talks to Raise Funds for Cipla Buyout

India's Torrent Pharma is in Talks to Raise Funds for Cipla Buyout
Photo: 19.09.2023 104

Torrent Pharmaceuticals is in talks with private equity funds CVC Capital Partners and Bain Capital to raise up to $1.5 billion to bid for India's Cipla.

The Indian pharmaceutical is planning to raise up to $1.5 billion to bid for Cipla, reported Reuters citing sources familiar with the matter.

Cipla is India's third-biggest drugmaker by sales. Companies interested in acquiring a stake in Cipla include Torrent and Blackstone. The deal could become one of the largest pharma deals in India ever.

Cipla's founding family is keen to sell their 33.4% holding entirely, sources say, and any bid will also trigger an open offer for another 26% stake, as per Indian regulations. That translates to a $6.75 - $7 billion deal, Bernstein estimated in an Aug. 30 report.

The consortium financing partner of Torrent is expected to be finalised within next few days, reported the news agency. 

Torrent and Blackstone both have submitted non-binding bids for Cipla, reported Reuters.

Cipla also exports medicines to North America and South Africa, and sells generic drugs to treat illnesses like cold, fever and headaches. It competes with global majors Pfizer  and Abbott, among others, in the world's most populous nation whose pharmaceutical market is expected to reach $130 billion by 2030, from $50 billion currently.

Torrent, whose market cap is 54% lower than Cipla's $11.9 billion, is present in more than 40 countries and sells medicines related to diabetes, pain management, gynaecology, oncology and anti-infective segments as per its website.

Sources: Reuters, Mint

pharmaceutical markets  India 

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