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Glaxosmithklin, Teva Pharma in fray for Micro Labs’s domestic business

13 Apr 2012 Evaluate

Both Pharma giant Glaxosmithkline (GSK) and generic player Teva Pharma are vying to acquire the business of Bangalore-based Micro Labs, the discussion for which is ongoing.

Though company’s promoter Dilip Surana is looking for a valuation of seven-eight times sales, which would be about Rs 8,800 crore, the potential buyers are unwilling to pay such a premium. The company has requested Nomura to help the company find suitors.

Micro Labs seems to be good buyout target due to its strong domestic presence across specialty segments. It has a strong presence in cardiology, neurology, neuro psychiatry, orthopaedics, gynaecology and diabetics. The privately held company has revenue of about Rs 2,800 crore, while its domestic sales are about Rs 1,100 crore.

GlaxoSmithKline Pharmaceuticals is one oldest pharmaceutical company in India. Internationally it has created many brands such as Ribena, Horlicks, Lucozade, Aquafresh, Sensodyne, Panadol, Tums and Zovirax, among others. It employs 5,000 people and has turnover of more than $1 billion in India.

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