According to sources Cipla is in talks with private equity players to bid for Merck’s generics business, this is the one, which Ranbaxy too had eyes on.

Sources have revealed that it will not be just Ranbaxy taking interest in Merck’s generics business but also Cipla and Dr Reddys are preparing their actions so far as Merck’s generics business is concerned. .

In terms of cost efficiencies, Cipla has become an example of cheap supplies to about seven US players. It has also got complete hold on technology so far as inhalation devices are concerned; it has got absolute great ranks in terms of HIV, Aids drugs supplies to the rest of the world. So, Merck’s generics business will probably be able to complement that business and take it to the the next level. As far as Dr Reddys is concerned, last year they had won USD 570 million bid of Betapharm.

There are a couple of other players - in fact KKR (Kohlberg Kravis Roberts) and Warburg have combined and formed a consortium to bid for this particular project.