 Matrix-Mylan deal demystified: An analysisPublished on Mon, Aug 28, 2006 at 15:53 | Source : Moneycontrol.com Updated at Wed, Aug 30, 2006 at 11:47 1557 Investors following Matrix Lab. Share this News with them.
Mylan has said that it will pick up more than a 71% stake in Matrix Labs in a deal, which values Matrix at just over a billion dollars. (Also see: Mylan to pick 71.5% stake in Matrix Labs ) Analysts say that this deal was on the cards for the last three months as Mylan wanted to come to India for a very long time. Matrix is the right fit in terms of cheap Active Pharmaceutical Ingredients, API, supplies, which were absolutely compulsory for Mylan to really look into because in the US generics market, particularly the price erosion had been so severe that only Indian companies were making good money. In the year 2000, the market cap of Matrix was about a million dollars and now it is a billion dollars, so it has seen ferocious growth. Mylan could not have got a better vehicle to really push its own global strategy. (Also see: Is the Matrix-Mylan deal through? )
In terms of global ranking, Mylan was slipping because of global mergers happening between Sandoz-Hexal, then IVAX getting taken over by Teva and Watson buying out Andrx. So Mylan was necessitated to buy the Matrix stake. (Also see: Is Mylan all set to buy Matrix Labs? ) Matrix was a very small company and not many people actually followed it right from the beginning. Matrix started by mastering a non-infringing process for Citalopram, which was an anti-depressant drug. It made more than Rs 200 crore in a very short time and it ploughed back all that money into its own core strength of API business. After that, it started taking a lot of interest in the API facility; it bought one more company called Medicorp Technologies, which has a lot of ANDA products and an FDA approval. Analysts say that right now, Matrix is valued quite well and in terms of operational synergies, this is the best fit that can happen to any company. Mylan will definitely grow better than what it has been growing in the last couple of years.
PREVIOUS STORY Trending NewsBusiness News
|
News Rel Comm Q4 Cons Net Revenue Up 5% At `5,310 Cr (QoQ)  The latest earning numbers FIRST on CNBC-TV18
Videos
Interviews
 May 27 2012, 11:52 | Source: CNBC-TV18  May 27 2012, 11:00 | Source: CNBC-TV18  Subscribe to Moneycontrol Newsletters |
|||||||
Matrix itself had actually approached a couple of big Indian companies, but because of their own internal differences, things could not materialise.
