2015 - Deals in Nice Areas

A number of new deals has been announced in the first 2 months of 2015 and not surprisingly, most of it involves companies with either niche or specialised portfolios. The trend seems to suggest that it pays to specialise in a particular area rather than offering a large general product portfolio.

Cipla announced it is partnering with Poonawalla's Serum India for the European markets. Poonawalla also commented that the company would be open to merging with Cipla offering Cipla's wider distribution reach including a large institutional business. Serum offers Cipla an access to a vaccines portfolio for the global markets especially when its trying to reach out with its own generic portfolio. In the global $15 Billion Vaccine market, there are very players other than the leaders viz. Sanofi, GSK & Pfizer (Ref: What makes Serum click?) No wonder, Sanofi happily bought Bharat Serum some years back.

Another deal that was announced about a fortnight ago was the acquisition of Famycare by Mylan. Famycare specialises in women's healthcare products, contraceptives, and hormones. Though a small player in terms of revenue (₹ 400 crores / ~ $70 Million), the segment has been highly attractive of late and offers some of the highest returns. 

Lastly, the Valent's Salix deal is targetted at the GI segment. Salix has a strong GI portfolio including Xifaxan for which an FDA approval is expected in the current year