BackMylan-Abbott deal to indirectly help Indian generics exports
Acquisition of generic businesses of Abbott by Mylan may make India a sourcing base
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Mumbai: US generic drug maker Mylan Inc.’s $5.3 billion all-stock deal to buy the branded generics business of global rival Abbott Laboratories will not have a direct impact on India even though Mylan may boost exports of generic drugs from India to developed markets.
The global deal between the two US drug makers, which involves the transfer of Abbott’s off-patent drug business in developed markets including Europe, Japan, Canada, Australia and New Zealand to Mylan, was announced on Monday.
Both Mylan and Abbott are directly present in India’s ₹ 75,000 crore generic drug market.
Mylan, which has its largest generic drug manufacturing base outside the US in India, with half of its 20,000 employees based in the country, currently exports active pharma ingredients and formulations to its international markets, largely to the US.
Since Mylan is acquiring the generic businesses of Abbott in other developed markets, it may make India a sourcing base for those markets as well, according to an industry expert, who doesn’t want to be identified.
Mylan, which bought Hyderabad-based active pharma ingredients maker Matrix Laboratories in 2006, had also acquired at least half-a-dozen small and medium pharmaceutical manufacturing companies in India subsequently. The company started its direct market operations in India in 2011, and is currently looking to expand its presence.
Since Abbott retains its generic business in emerging markets including India, its six-decade-old India business will remain unaffected.
Abbott, currently the largest generic drug company in India by market share, operates two entities—Abbott India Ltd, a listed branded generic company, and Abbott Healthcare Pvt. Ltd, a wholly-owned subsidiary set up after the 2010 acquisition of the domestic formulation business of Piramal Healthcare Ltd, now known as Piramal Enterprises Ltd.
“This announcement has no impact on Abbott’s branded generics business in India," said a spokesperson for Abbott India.
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