Possible acquisition of Intas Pharma to be a positive for the company: Deepak Shenoy

In a chat with ET Now, Deepak Shenoy, Founder, Capital Mind, shares his view on Sun Pharma.

ET Now: Sun Pharma what is the take on this one now some positive news coming in this morning saying that perhaps they are in early talks to buy a company called Intas Pharma for a sizable $2.3 billion?

Deepak Shenoy: Rs 15,000 crore and I do not know the contours of the deal obviously with no information out yet but there are into biosimilars which as a disclosure. We are long on Sun Pharma so we view this development positively, we look at it with a bias but the point over here is Sun Pharma is just getting bigger and bigger in terms of size and reach and while in the next one or two years I do not see a huge up move for the stock immediately because of all the problems that it has.

The fact that it has the size and perhaps the reach and the diversity of products will help it going forward. This particular deal we cannot value right now because I have not seen Intas’s book so I have no idea what the valuation is but I believe that for them expansion through an inorganic route is perhaps the way to become the biggest Indian pharma company.