Japan-based pharmaceutical company Takeda has begun talks with India’s pharma companies  Lupin and Cipla, for buying their pharma businesses, Economic Times reported.  

The talks with Mumbai-based DB Gupta-promoted Lupin have progressed beyond the initial stage. Osaka-headquartered Takeda is interested in buying the domestic formulations business, along with Lupin’s research facility. But the promoters are not willing to part with the research facility and are insisting on a price that values the company at 17 times its revenue.

“We are not in talks with anyone either to sell our company or any of its brands,” said, Cipla spokesperson Antara Mukherhee.  Lupin spokesperson said, “We, as a policy, do not comment on baseless market speculation.” 

Takeda is interested in catching up with its rival Sankyo and other global pharma companies, some of whom have done big ticket acquisitions. 

Takeda will benefit largely if it buys either Cipla or Lupin’s formulation business. Cipla is the second-largest generic maker by market share in India and Lupin is the fifth largest player. Both have strong brands and wide distribution network.

 In 2010, US-based Abbot Healthcare bought Piramal Healthcare’s formulation business for about 17,000 crore and in 2009, Daiichi Sankyo bought Ranbaxy for $3.5-4 billion.

In 2010, Takeda appointed the former Roche executive Shankar Suryanarayan as its India head and announced a plan from 2010-12, including tie-ups with local companies. Takeda is a research-based  global pharmaceutical company. Its in-house ethical drugs are marketed in around 90 countries worldwide.