Biocon Ltd, the Bangalore-based biopharmaceuticals company, is in talks to acquire Siro Clinpharm Pvt Ltd, according to a report in Businessworld. Siro Clinpharm is a Mumbai-based global contract research organisation (CRO).

Siro Clinpharm is backed by two private equity investors Kotak Private Equity and the 3i Group, and jointly control nearly 70% stake of the company while the Daftarys family hold the rest, added the report. Siro also has presence in the US, Europe and Israel.

The report further suggests that the deal could cost in the region of Rs 400 crore for Biocon, a valuation in multiple of the revenue of the target company, which was somewhere in the region of Rs 200 crore in last fiscal.  The private equity investors, who entered Siro in May 2007, are believed to have together invested around Rs 100 crore, and are expecting a return of 2-3 times on the original investment, report adds.

Biocon has been eyeing possible acquisitions in India and overseas geographies for quite sometime from now. Recently, the company has signed a memorandum of understanding (MoU) with Malaysia's Biotechnology Corporation to explore collaboration and potential investment in Malaysia's biotechnology industry.

In the third quarter ended by December 31, 2009, Biocon has seen three fold increase in its revenue at Rs 80.8 crore over the same period a year ago. Total income of the company rose to Rs 641.5 crore for the quarter ending December, against Rs 452.4 crore in the corresponding period last year.

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