Teva facility in Jerusalem (archives)
Photo: Reuters
Teva, Pfizer eye Indian company
Israel-based drug maker said to be holding intensive talks with India's Micro Labs for $2 billion acquisition
Teva, Pfizer and several private funds are competing for the acquisition of Indian company Micro Labs for $2 billion, according to Indian media reports.
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The media outlets noted that Teva and Micro Labs have been holding intensive negotiations, with the main disagreement focusing on the market value of the Bangalore-based company.
According to estimates, Micro Labs recorded a $46 million profit in 2011 and some $281 million in income.
Capital market analysts expressed their doubts over the acquisition's profitability.
Steven Tepper of Harel Finance wrote, "Although we are talking about branded generics, and the acquisition matches Teva's expansion strategy, the price seems very high and it's unclear how Teva will be able to justify it."
