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Torrent Pharma to buy Glochem Industries in a deal of Rs. 300 crore

Recently the Pharma company from Ahmedabad, Torrent Pharma is in advanced talks due to its decision to buy bulk drugs supplier Glochem Industries for about Rs. 300 crore.

Glochem is a medium-sized company that makes bulk drugs, or active ingredients, which are used as raw material for medicines. The privately held company owns a few USFDA-approved sites in Hyderabad and Vizag where oral bulk actives are manufactured. Torrent could use Glochem’s FDA-approved sites as “building blocks”, as it aims to significantly ramp up its us businesses, said one of the persons cited earlier, requesting anonymity.

ET’s query to Torrent on the matter had not elicited any response till the time of going to press on Thursday. Phone calls to Glochem executives remained unanswered.

Torrent had earlier expressed appetite for inorganic growth and was among a handful of bidders for Hyderabad-based injectables maker Gland Pharma, but eventually backed out as valuations for that asset soared well above a billion dollars. Torrent has two API units in Gujarat — one each at Indrad and Dahej — and a large part of its demand is met via external suppliers.

Over

a call with investors on May 23 after announcing the company’s fourth-quarter earnings , Sanjay Gupta, Torrent’s executive director for international operations, had termed as “sweet spot” deals in the range of $300 million to $600 million, but on a more bullish note added that “strength of our organisation and our finances allows us to target larger acquisitions. We can even realistically bring about a much larger acquisition”.

Torrent said in the medium-term the company is looking to diversify into the hospital business for a stronger and more sustainable presence in the US market . Without naming Gland Pharma, Gupta said Torrent is no longer part of (deal) for a “current large divestment which is currently taking place in India”.

With a market cap of around $3.3 billion, Torrent lags its local peers like Sun Pharma and Cadila Healthcare in the US, but over the last few years, the company has drawn up ambitious plans to grow its US business.

Torrent posted a 128% year-on-year fourth-quarter growth in its US business, with sales of about $77 million. This was backed by generics of Abilify, Nexium and Detrol. The company expects to launch around 10 products during the current financial year. Torrent is among the few Indian companies which have been largely successful in meeting inspection and compliance procedures as mandated by the USFDA.

Mandakini is a bioscience enthusiast and loves to portray a picture of “Science” like never before. Serving as an Editor in Biotecnika she has penned down many interesting news and articles in the past and has also helped in posting just the right job for you. Follow her for more updates in the industry !!