Dabur Pharma On The Block: Report
Dabur Pharma Ltd, an anti-cancer drug company carved out from the parent company, Dabur India, is considering a stake sale to a private equity investor or an overseas drugmaker, The Economic Times reported. The New Delhi-based company is in talks with a German company for a possible sell out, the newspaper said, without giving details. However, Dabur Pharma’s CEO Ajay Vij has denied that the company is looking for a partner, the report said.
Vij has vehemntly denied any sale plans. He told Thomson Financial News: ‘On the contrary, we are looking for opportunities for growth by way of acquisitions.” However, sources close to the development told VC Circle that Dabur Pharma, the anti-cancer drug company, is indeed on the block.
Dabur Pharma is India’s only focused oncology (anti-cancer) company. Last year, the company sold its non-oncology formulations business to Alembic for Rs 159 crore. Dabur Pharma has a portfolio of several oncology drugs including finished dosage formulations and active pharmaceutical ingredients (API). Most of Dabur’s products are based on traditional Indian medicinal platform (ayurveda), a niche that is unlikely to see pricing erosion. Dabur India is one of the few companies that grew rapidly as well has expanded margins.
Dabur Pharma Ltd on Wednesday said it has reported a 7.84 per cent decline in its net profit at Rs 8.23 crore for the quarter ended December 31, 2007 as compared to Rs 8.93 crore in the same period last fiscal. The total income also dropped by 11.57 per cent to Rs 69.04 crore in the third quarter, against Rs 78.07 crore during the corresponding period a year ago.
