Pfizer in talks with Indian drug firms Zydus Cadila, Intas Pharma, Mankind, Emcure for possible buy-outs: Reports

World’s top drug maker is now hunting for Indian partners for possible alliances and buyouts to boost its earnings which is suffering form nagative impacts due to patent expiration of some of its block-buster drugs, reports said.

Pfizer is reportedly in talks with several Indian big as well as mid size drug companies has including Cadila Healthcare, Emcure, Intas Pharma and Mankind Pharma.

$48 billion worth Pfizer has tapped Zydus Cadila, Emcure, Intas Pharma and Mankind Pharma, but the Indian companies have not responded favourably to the offers, the report said citing an unidentified senior industry executive with direct knowledge of the matter.

Ahmedabad-based Zydus Cadila figures among the top five pharma companies in India. Zydus Cadila reported a total income of Rs. 908 crore for the first quarter ended June 30, 2009. Zydus Cadila has filed over drug master files (DMFs) for APIs  with USFDA and received approvals for about 50 abbrevitaed new drug applications (ANDA) for generic drugs in US.

Zydus has nine pharmaceutical production operations in India as well as an R&D centre. Zydus Cadila develops and manufactures a large range of pharmaceuticals as well as diagnostics, herbal products, skin care products and other OTC products.

Zydus Cadila’s R&D pipeline comprises 6 new molecules (NMEs) to treat conditions like dyslipidemia, anti-inflammatory and pain management, obesity and diabetes, which are in various stages of clinical trials.

Intas Pharmaceuticals, which is currently ranked 16th among top Indian companies, manufactures a range of formulation including tablets and injectables.

With its manufacturing facilities approved by international regulatory agencies like MHRA of UK, ANVISA of Brazil, TGA of New Zealand, MCC of South Africa, the Ahmedabad headquartered Intas Pharma offer contract services to several companies abroad, which contributes to nearly 25% of its overall revenue.

Headquartered in Pune, India, Emcure manufactures APIs and formulations. Emcure exports its own formulations to Asia, Africa, CIS, Europe, Latin America and the Middle East. Emcure’s manufacturing facility has accreditation from US FDA, UK MHRA, WHO Geneva and MCC South Africa.

Emcure is also an outsourcing partner for some of the largest MNCs.

Mankind is among the top 5 fastest growing Pharma companies of India as per ORG-ims. Mankind achieved a turnover of Rs.920 Cr in the fiscal year 2008-09.Mankind is ranked 4th in India and 3rd in North India as per ORG-ims, Prescription Audit, 2008 and as per ORG-ims Prescription / Doctor / Month audit of Jan.2009, Mankind is ranked 1st in India. Based in New Delhi, India Mankind has strong market presence in antibiotics, antifungals, gastrointestinals, NSAIDs, anthelmintics, cardiovascular, dermal and erectile dysfunction categories.

In May, Pfizer Inc had cut deals with Indian generic makers Aurobindo and Claris Life Sciences  acquire rights to 55 generic pills and 20 injectables for more than 70 emerging and developed markets through these two deals.

Pfizer has expanded the existing collaboration with the Hyderabad, South India-based Aurobindo Pharma Ltd reached earlier this year to sell 60 off-patent drugs. Meanwhile Pfizer’s agreement with Claris Lifesciences Ltd is to market 15 off-patent injectable drugs.

Recently, Pfizer hiked its stake from 41.23% to 75% in Pfizer India through an offer to gain a better control on its Indian business arm, which represents an emerging market.

Pfizer India Limited registered a turnover of US$ 172 million (November 2006). Pfizer has made clinical research investments of US $ 15.75 million in India.

Pfizer introduced over half a dozen patented medicines in India since 2005 including Vfend, Viagra, Lyrica, Caduet and Macugen. Several of Pfizer’s products feature among the top-100 pharmaceutical brands in India. Corex (cough formulation) and Becosules (multivitamin), continue to be the leading  brands amongst all pharmaceutical drugs produced in India.

Pfizer launched its kidney cancer drug Sutent (sunitinib mesylate) in India in January.

Pfizer was granted a patent for Sutent in India in 2007. Sutent costs around Rs1.96 lakh for a 45-day treatment in India.

Last year, Pfizer launched anti-smoking drug Champix in India. Till date, Champix had global sales of around $1 billion. The complete package of the drug will cover a 12-week treatment program and will be priced somewhere around Rs 9,500.

Pfizer has previously reported its interest in emerging markets like India, China, and Korea. The company has also expressed interest in generating a stronger hold in the generic pharmaceuticals market and is likely to use its India operations as a base.

Not only Pfizer a few of other leading MNCs are also evinced interest to buy-out companies from India as part of their strategies to hedge on fast-growing emerging markets as the manor markets stall in terms of revenue growth

It was reported in September that world’s 2nd largest drug maker GlaxoSmithKline was in talks with its Indian associate in generic drugs business Dr Reddy’s to buy a 5 percent stake.

In June, DRL had agreed to supply GSK with over 100 branded drugs to be sold in Africa, west Asia, Asia Pacific and Latin America.

As per agreed terms, the products will be manufactured by Dr. Reddy’s and will be licensed and supplied to GSK in various emerging markets  excluding India. Revenues will be reported by GSK and will be shared with Dr. Reddy’s . In certain markets products will be co-marketed by Dr. Reddy’s and GSK.

GlaxoSmithKline’s five percent stake in India’s second largest generic  firm Dr Reddy’s could strengthen the generic drugs deal which was forged as part of Glaxo’s Chief Executive Officer Andrew Witty’s ongoing strategy to make acquisitions and partnerships in emerging economies to offset the impact of competition from generic medicines, reports said.

Dr Reddy’s, however, denied the media reports saying that the promoters of the company have no intention to dilute or sell their stake.

Glaxo, Pfizer, Merck Or Sanofi-Aventis were also listed as the possible suitors who were holding talks with Dr Reddy’s for the founders stake.

Recently, Sanofi Aventis bought-out the owners’s stake in Hyderbad, India-based Shantha Biotech for more than 8 times of its actual valuation.