Indian Pharma Sector Sees Surge in Overseas Mergers and Acquisitions

Indian Pharma Companies Look Overseas for Growth Amid Global Challenges

Indian drug companies are increasingly seeking growth opportunities abroad, driven by global challenges such as US tariff threats, price erosion in the generics market, and a shift towards biologics. In response, Indian firms are exploring new avenues for growth, with acquisitions on the rise.

The latest development came in the form of a US executive order issued by President Donald Trump on April 2, imposing 100% tariffs on branded pharmaceuticals imported into the United States unless manufacturers agree to government pricing agreements or commit to producing their products domestically. This move has added to the challenges faced by Indian pharma companies, which have traditionally relied on generics.

Despite these hurdles, deal activity in the pharma sector has been increasing, with several Indian companies announcing strategic acquisitions. For instance, Sun Pharmaceutical Industries, one of the largest pharma companies in India, has entered into a definitive agreement to acquire US-listed women's healthcare company Organon. The deal is valued at $11.75 billion, with Sun Pharma acquiring 100% of Organon's outstanding equity.

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Other Indian pharma companies, such as Zydus Lifesciences, are also eyeing acquisitions in the biopharmaceutical space. The Ahmedabad-based company is reportedly in talks to acquire a majority stake in US-based biopharmaceutical firm Ardelyx Inc., with the deal valued at $2.2-2.5 billion.

In addition to these deals, other Indian pharma companies are also expanding their presence in the global market. For example, Intas Pharmaceuticals completed the purchase of the Udenyca franchise from Coherus BioSciences in a deal valued at $558.4 million. Natco Pharma also acquired a 35.75% stake in South Africa's Adcock Ingram Holdings in a deal valued at about $226 million.

Lupin, another Mumbai-based company, signed a definitive agreement for the acquisition of VISUfarma B.V. in the Netherlands from GHO Capital Partners for €190 million. The acquisition was completed three weeks ago, marking a significant milestone in Lupin's strategy to expand its speciality care portfolio and strengthen its presence in Europe.

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The trend of Indian pharma companies looking overseas for growth is expected to continue, driven by innovation and new technologies. With several deals already announced and more in the pipeline, it will be interesting to see how these companies navigate the global pharma landscape and achieve their growth objectives.