In an interview to CNBC-TV18's Ekta Batra and Vikas Dandekar, the Executive Chairman of Torrent Pharma, Samir Mehta spoke about the rationale behind the deal and where it would take the company in the Indian pharmaceutical market.
The Torrent Pharmaceuticals and Unichem Laboratories deal is close to fruition. On a day this Rs 3600 crore deal has been sealed, it is a good time to look at M&A activity in 2017 so far. In an interview to CNBC-TV18, Raja Lahiri of Grant Thornton, Randhir Kochhar of Ernst & Young, Vivek Gupta of KPMG and Ashvin Parekh of Ashvin Parekh Advisory Services discussed about the same.
Torrent will fund the acquisition through a mix of internal accruals and bank borrowings.
Samir Mehta of Torrent Pharma says integration with Elder Pharma has worked out well and will become cash-accretive by next year.
Elder Pharma recently sold one of its key brands, Shelcal, to Torrent Pharma. Post the sale, Elder is focusing on remaining brands, including Eldervit and Somazina.
In the long-term, Elder Pharma plans to bring products from the R&D pipeline, actively being worked on in the UK, and launch them in the Indian market, says Alok Saxena, Joint MD, Elder Pharma.