Sun Pharmaceutical Industries Ltd in Talks to Buy Meda AB for $5 - $6 Billion: Sources

Published: May 31, 2013

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India's Sun Pharmaceutical Industries Ltd is in talks to buy Swedish drugmaker Meda AB for $5 billion-$6 billion to boost its generics business in developed markets, two sources with direct knowledge of the process said. Meda makes specialty products, over the counter drugs and branded generics - the same areas of focus as Sun Pharma. Meda had sales of about 13 billion Swedish crowns ($1.98 billion) in 2012 and has a market value of roughly $3.7 billion. Mumbai-based Sun Pharma is India's most valuable drugmaker, with a market capitalisation of roughly $20 billion, and has made several acquisitions in recent years, although a deal for Meda would be its largest. Sun Pharma had cash of 40.6 billion rupees ($721.84 million) at the end of March. "Sun Pharma is in an extremely sweet spot with a low amount of debt and strong organic business growth," said Jagannadham Thunuguntla, equity head at SMC Global Securities in New Delhi.

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