Updated on 18 June 2013
In 2012, India witnessed materialization of 31 M&A deals (inbound, outbound and domestic; and also including product portfolio deals) valued at $1.7 billion. Thus, marking a rise from $860 million recorded in 2011. Some of the most notable transactions from the last year include acquisition of US-based dermatology company Dusa Pharma by India's Sun Pharma at $225 million and getting access into US dermatological treatment market.
Among inbound deals, Hospira acquired various assets of Chennai-based Orchid Chemicals & Pharmaceuticals, including its active pharmaceutical ingredients business and R&D facility, at $200 million. Another highlight was B Braun's acquisition of 75 percent stake in Ahlcon Parenterals at $50 million. Ahlcon is engaged in the business of parenterals and manufacturing life-saving intravenous fluids and medical disposables. The deal would enable B Braun to further strengthen its portfolio of medical devices, critical care, surgical instruments, and renal care therapy in India. Aligning to the similar strategy, B Braun has also acquired medical devices manufacturer, Oyster Medisafe, a company going strong in safe infusion therapy products in the Indian market.
Strengthening its grip on the US and European market, Pune-based Serum Institute acquired Bilthoven Biologicals, a bioengineering and pharmaceutical company based in the Netherlands, for $100 million. With this acquisition, Serum Institute has got access to the vaccine development technologies of Bilthoven Biologicals, a contract manufacturer of monoclonal antibodies, to manufacture Injectable Polio Vaccine (Salk), a capability currently possessed by only a handful of other vaccine manufacturing plants globally.
"India had a mixed healthcare M&A record in 2012. While the number of M&A deals largely stayed the same compared to 2011, only one deal was worth above $100 million. Perhaps it is a sign of caution from investors, who are worried about the country's patent protection issues, stemming from a need by the government to deliver affordable medicine to its people," said Mr Kotaro Yoshida, senior research analyst at global business intelligence solution BioPharm Insight.
According to mergermarket report, Korea had 12 M&A deals across pharma, medtech and biotech sector, in 2012. The deals are valued at $326 million, recording a drop of 72 percent from 2011 when Korea had 14 deals valued at $1.18 billion.