TIWA, one stone, three birds plan to buy India's sipura for us $6 billion

Source: Erez vigodman, CEO of e-medicine Facebook on May 12, 2014, finally fired the first fire for the new official to take office: at the moment of frequent mergers and acquisitions of pharmaceutical giants, TIWA had announced that it would not be absent for a long time Until May 8, TIWA finally disclosed that it planned to purchase Cipla, an Indian pharmaceutical company, for us $6 billion This is TIWA's third offer to Cipla, which took place in November 2013 Livemint's source said the offer was very attractive However, Cipla told Bloomberg that the news was groundless and purely speculative "We have denied this rumor in the past and will continue to do so in the future," the company said in a statement Another case where someone is willing to buy, but they don't like selling! Cipla is a well-known pharmaceutical company in India, ranking among the top five pharmaceutical companies in India Founded in 1935 and headquartered in Mumbai, the company is mainly engaged in the production and export of APIs, intermediates and preparations The biggest feature of the company is that the R & D investment reaches 5% of the revenue on the premise that the sales expense is only 2% and the material cost does not exceed 40% of the total revenue (for details, please refer to "talk about Cipla sipura, the Indian pharmaceutical giant") some industry analysts believe that if TIWA completes the business, it will achieve the effect of one stone and three birds: first, TIWA can effectively control costs Moving their production lines to large, low-cost Indian factories would be a good way to deal with cost cutting plans The strategy, which was launched in 2006, now employs as many as 20000 people in India Secondly, Cipla also has its own bio generic business, which helps TIWA improve its product line Cipla imitated Roche's breast cancer drug Herceptin in 2010 and Enbrel, Amgen's rheumatoid arthritis drug, in 2013, which is said to reduce the price to 30% Thirdly, TIWA said that once the cooperation strategy is made, TIWA is willing to provide considerable resources to support Cipla, which also provides a good condition for Cipla with excellent R & D strength TIWA is also prepared for Cipla's unwillingness It is reported that TIWA will first acquire 36.8% of the company's shares, and then purchase another 20% from Volkswagen As for the price, it is set at a premium of 20%.