Aurobindo Pharma and Intas are in the race to buy UK-based Mallinckrodt's generic drugs business in the US, sources said. The deal valued at USD 2 billion, will be the biggest ever overseas acquisition for any Indian drug maker.
Sources said the deal is currently in its preliminary stages. The companies have submitted an initial bid for the Mallinckrodt's generic business, which has been up for sale for last couple of months.
Mallinckrodt's generics business has sales of around USD 1 billion.
Mallinckrodt has world's most diverse line of bulk medicinal controlled substances, which has generated interest from these companies. The margins in the segment are quite high with less competition in comparison to the plain generic drugs.
In reply to query sent by CNBC-TV18, Mallinckrodt said it does not comment on market speculation.
Mallinckrodt generic business fits well with the Aurobindo Pharma's, which is a leading manufacturer of API (Active Pharmaceutical Ingredient).
Privately held Intas Pharma is backed by Temasek and ChrysCapital. Some strategic and global private equity players are also in the race to acquire Mallinckrodt's generics business.
Mallinckrodt's business Includes Fentanyl, Methadone, Hydrocodone, Hydromorphone, Oxycodone, Morphine, Codeine-based drugs.
Aurobindo Pharma and Intas did not respond to queries sent by CNBC-TV18.
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