US drugmaker looking to move into Indian market
Amneal is said to be in advanced talks to buy Hyderabad-based oncology products manufacturer
US-based drug maker Amneal Pharmaceuticals, led by two Indian brothers, is reportedly looking to India to expand its manufacturing footprint. The company is said to be in advanced talks to buy Hyderabad-based oncology products manufacturer Epsilon Pharmaceuticals.
According to industry sources, the deal could include sale of a manufacturing facility approved by the US Food and Drug Administration (US FDA). Epsilon, incorporated in 1998, is mainly engaged in the manufacture of sterile injectables for the treatment of cancer. It has a facility spanning over 20,000m2 with a capacity to make up to five million lyophilised vials and up to 10 million liquid filled sterile vials.
For Amneal, which already has a presence in the generic drug manufacturing space, this deal makes eminent business sense, say analysts. Oncology injectibles are seen as a high growth segment, with higher margins than conventional generic products.
Amneal Pharma already has a presence in India through its r&d facility near Ahmedabad, Gujarat. It develops more than a dozen generic products from this centre across all dosage forms, all of which are to be filed from its US facilities.
If the two companies seal the deal, they may also need clearance from the Foreign Investment and Promotion Board in India.
Recently, another American generic drug company, Mylan, acquired Strides Arcolab’s injectable manufacturing subsidiary, Agila Specialities in a deal worth US$1.8bn. Others, like Hospira, have also expanded their presence in the injectable manufacturing space in India.
