3M's pharma sales close to $700m

NEW DELHI: Ranbaxy and Wockhardt are said to have lined up for 3M’s pharma business in the US. Both entities are looking to further their global ambitions by clinching this deal.

Earlier in March this year, Ranbaxy made three acquisitions in the form of Romania-based Terapia, Belgium’s Ethimed and GSK’s generic business, Allen, in Italy.

Similarly, Dr Reddy’s Labs also recently bagged German generic drugmaker Betapharm. Wockhardt was in the race to acquire Florida-based $1.9-bn Andrx, but lost out to Watson, and is still looking for a big-bang US entry. Private equity players are interested in 3M’s pharma arm as they can maximise revenues from certain drugs going off patent in select markets. While 3M does not report its pharma division revenues, it is pegged at about $700m.

Most Indian pharma companies are vying for entry into the branded generic drug space to register global presence. Recently, Glenmark Pharma, Lupin, Aurobindo Pharma and Jubilant Organosys started raising funds for lucrative acquisitions in the US and Europe.