According to persons familiar with the situation, Cipla, KKR-owned JB Chemicals, and Torrent Pharmaceuticals are in the final stages of bidding for Medley Pharmaceuticals in a deal for roughly Rs 4,500 crore. Medley received half-dozen proposals, including bids from 2-3 private equity groups.
According to the sources, the pharma giants proposed a higher price, in the area of 4,500 crore, and made the cut following the non-binding bid submissions. According to one of them, Cipla is the most active in its pursuit.
Emails addressed to Cipla, Medley, Torrent, and JB Chemicals received no response as of Monday press time. Medley’s promoters are being advised by Kotak Mahindra Capital.
According to the research organisation ORG IMS, Medley Pharmaceuticals, founded in 1969 by Sami Khatib as Medley Laboratories, is among the top 40 pharmaceutical businesses in India. Hematinics, anti-ulcerants, anti-bacterials, pain management, gynaecology, and cardiovascular medications are among its specialisations.
Medley’s biggest brand is the RB Tone syrup, which specialises in iron preparations. Dompan (domperidone & pantoprazole), O2 (ornidazole & ofloxacin), Tazocef (tazobactam & ceftriaxone), and Ostium k2 are some of the best-selling products (Vitamin K27 combination in India)
According to the ORG IMS report, RB Tone and O2 are among the top 300 pharma brands in India. RB Tone is the second best-selling drug in the haematinic segment, while O2 is the best-selling anti-diarrheal drug.
Medley employs nearly 3,000 employees, with around 2,200 working in sales. Around 700 colleagues operate in its corporate and manufacturing activities across India, with another 100 working in foreign business.
Revenue is expected to climb 16% to 926 crore in FY22, up from 800 crore the previous year, owing to higher contributions from the acute sector (approximately 53% of total sales) and the balance from the chronic segment.
According to market research company AWACS, the Indian pharmaceutical market (IPM) gained 12.1% in value and 4.8% in volume in August, owing to substantial growth across all therapeutic categories.
The government-allowed wholesale pricing index (WPI) inflation-linked price hike has assisted the pharma business in increasing by 10% on pharmaceuticals under price control, as well as monsoon-related infectious disorders.
The fastest increasing categories were cardiac (13%), anti-infectives (13%), and gastrointestinal (12%). Diabetes medication and vitamin sales both grew by 9%.
GlaxoSmithKline Pharmaceuticals, GSK’s Indian subsidiary, stated that its top medicine brands, including Augmentin, Calpol, and Supacef, have been maintaining market share, despite the recent increase in price and partial stabilisation of raw material costs will assist it in maintaining operating margins in FY23.

Cipla, JB Chemicals, and Torrent are the frontrunners in the Rs 4,500-crore competition for Medley Pharma

According to persons familiar with the situation, Cipla, KKR-owned JB Chemicals, and Torrent Pharmaceuticals are in the final stages of bidding for Medley Pharmaceuticals in a deal for roughly Rs 4,500 crore. Medley received half-dozen proposals, including bids from 2-3 private equity groups.
According to the sources, the pharma giants proposed a higher price, in the area of 4,500 crore, and made the cut following the non-binding bid submissions. According to one of them, Cipla is the most active in its pursuit.
Emails addressed to Cipla, Medley, Torrent, and JB Chemicals received no response as of Monday press time. Medley’s promoters are being advised by Kotak Mahindra Capital.
According to the research organisation ORG IMS, Medley Pharmaceuticals, founded in 1969 by Sami Khatib as Medley Laboratories, is among the top 40 pharmaceutical businesses in India. Hematinics, anti-ulcerants, anti-bacterials, pain management, gynaecology, and cardiovascular medications are among its specialisations.
Medley’s biggest brand is the RB Tone syrup, which specialises in iron preparations. Dompan (domperidone & pantoprazole), O2 (ornidazole & ofloxacin), Tazocef (tazobactam & ceftriaxone), and Ostium k2 are some of the best-selling products (Vitamin K27 combination in India)
According to the ORG IMS report, RB Tone and O2 are among the top 300 pharma brands in India. RB Tone is the second best-selling drug in the haematinic segment, while O2 is the best-selling anti-diarrheal drug.
Medley employs nearly 3,000 employees, with around 2,200 working in sales. Around 700 colleagues operate in its corporate and manufacturing activities across India, with another 100 working in foreign business.
Revenue is expected to climb 16% to 926 crore in FY22, up from 800 crore the previous year, owing to higher contributions from the acute sector (approximately 53% of total sales) and the balance from the chronic segment.
According to market research company AWACS, the Indian pharmaceutical market (IPM) gained 12.1% in value and 4.8% in volume in August, owing to substantial growth across all therapeutic categories.
The government-allowed wholesale pricing index (WPI) inflation-linked price hike has assisted the pharma business in increasing by 10% on pharmaceuticals under price control, as well as monsoon-related infectious disorders.
The fastest increasing categories were cardiac (13%), anti-infectives (13%), and gastrointestinal (12%). Diabetes medication and vitamin sales both grew by 9%.
GlaxoSmithKline Pharmaceuticals, GSK’s Indian subsidiary, stated that its top medicine brands, including Augmentin, Calpol, and Supacef, have been maintaining market share, despite the recent increase in price and partial stabilisation of raw material costs will assist it in maintaining operating margins in FY23.

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