Torrent Pharma s attempt to acquire the stake of the Hamied family in Cipla has hit a roadblock due to differences in valuation. Talks between the two parties have been suspended, but may resume if they can agree on a valuation. Other potential buyers have also been deterred by the rising valuations of Cipla shares. Torrent Pharma had been working on a $7 billion acquisition financing package for the deal.
With the possibility of Bain Capital and Dr Reddy s entry in the race to acquire promoter s stake in Cipla, competition has now intensified as firms like Torrent Pharma and Blackstone have already placed their respective bids
Cipla is already on top of the game, enjoys the best operational efficiencies, have a strong talent and management as well as robust portfolios, said one analyst. Scaling up specialty segments or diving deep into the biosimilars space will be the best options for PE firms, analysts suggested.