Wed 19 Sep 2007
Bradley Pharma has expectedly evoked good response. Bidders for Bradley include home grown Dr Reddy’s, a few global generic players and some drugmakers who have backing from private equity companies.
These include lesser known Archimedes Pharma promoted by Warburg Pincus and Nycomed which has tacit support from Blackstone. Typically, the bid value in an auction process goes through the roof when bidders evince excessive interest.
With a product portfolio of high margin dermatology products, Bradley has revenue of $144 mln and 2006 profit of nearly $ 9 mln. The bids received are in the range of $ 300 mln. Observers say Bradley shares are also trading well with moderate market capitalisation. But, if private equity players raise the value too high, Dr Reddy’s may opt out.
A lot depends on what comes out from the management presentaions to be held in the next few weeks and how the finances are structured. This buy-out game looks set for exciting times !