Have Indian fine chemical and pharma companies been too hasty in their global acquisitions?
I had been hearing talk of some companies running into integration problems or having second thoughts on perceived benefits of their acquisitions. But today’s report that Matrix Labs is exploring sale of Docpharma suggests that there is some basis to all the talk.
Matrix had acquired Belgium’s Docpharma in 2005 for $263m – the largest India pharma acquisition at that time. Docpharma and the other subsequent acquisitions by Matrix were expected to help fill up the missing gaps in its portfolio.
But soon after the Docpharma buy, Mylan Inc picked up a 71.5% stake in Matrix and Docpharma does not appear to fit in Mylan’s plans for the future.
Will this be the start of a new trend with Indian companies emerging as sellers rather than buyers?
Comments (1)
Is Docpharma assimilation a Mylan problem or a Matrix problem, since Mylan owns 71.5% of Matrix.
I believe A bought B but in turn got bought by C. Three different cultures are coming together. This is a cross cultural challenge.
American attitude is always aggressive and get things done by a timetable. Indian attitude has changed in the last 10 years but still laid back whereas Europe is in between.
If the Indian companies are going to play in the global field then they have to keep pace with others and work at their pace. If this does not happen, Indian companies would loose the advantage.
Posted by Girish Malhotra | March 13, 2008 7:01 PM
Posted on March 13, 2008 19:01