Specialty injectables maker Sagent considering buyout with Cipla, Dr. Reddy's, others
- The specialty sterile injectables firm Sagent Pharmaceuticals, based in Illinois, is reportedly exploring a sale to a number of prominent international drugmakers in India.
- According to the International Business Times and the Economic Times, firms such as Cipla, Dr. Reddy's Labs, Lupin, Torrent Phama, and Aurbindo Pharma are potentially interested in the deal. Sagent is worth somewhere in the $200-$300 million range but was reportedly seeking a $500 million sale to companies like Indian drugmaker Sun Pharma, which is said to have passed over the potential buy.
- Pharma firms have been snapping up injectables makers in recent years, as FiercePharma notes, including the big-name acquisition of Hospira by Pfizer last year.
Sagent officials laid out the logic of a sale to the Economic Times. "Sagent has a tailor-made injectable sales and distribution outfit that could suit Indian companies," said a company executive.
"But the injectable business is getting highly competitive so the margins are getting squeezed. This is the right time to exit (for current investors), as money is available and valuations will be better."
Sagent's model has often relied on the use of contractors, which explains the tightening margins and new reported hopes of a sale.
- FiercePharma Manufacturing Sterile injectables manufacturer Sagent said to be shopping itself