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?