Glaxo in talks to buy India's Piramal Healthcare: Media report

NEW YORK: British pharma major GlaxoSmithKline Plc is in discussions to acquire Indian generic drug maker Piramal Healthcare for nearly $1.5 billion, says a media report.

Quoting people familiar with the matter, The Wall Street Journal has reported that Glaxo is in talks to buy Piramal Healthcare for "roughly $1.5 billion".

The daily in a report published online on Saturday noted that the talks are at an early stage and could still fall apart.

Other drug firms, including France's Sanofi-Aventis SA, have shown an interest in Piramal, the report quoted a person familiar with the matter.

According to the Wall Street Journal, as drug sales are slow in mature markets like the US and Europe, Glaxo and some of its rivals are looking to expand fast in emerging markets, "where sales in recent years have grown at a higher rate".

The daily said that Piramal sells generic prescription drugs and chemical ingredients that "other companies turn into drugs", among others.

"Piramal has a current market value of about $820 million. Its shares in India has fallen sharply during recent market turmoil," the report said.