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India: Gov’t shuns foreign pharma ownership, halts US buyout of Agila

By  |  July 8, 2013
India: Gov’t shuns foreign pharma ownership, halts US buyout of Agila

India’s Foreign Investment Promotion Board deferred a ruling on a $1.6 billion planned buyout of Agila Specialties by US firm Mylan Inc., putting at least a temporary stop to a deal part of a larger trend of foreign ownership of India-based cancer drug companies. Reports say the Department of Industrial Policy and Promotion recently raised concerns that foreign takeovers of pharmaceutical companies is threatening the cancer drug and vaccine market. Government officials cited a 2009 deal that saw a French takeover of Hepatitis B vaccine maker Sanofi Aventis; the result of the deal was skyrocketed vaccine prices in the country. DIPP’s foreign investment board is looking to prevent another such situation through halting the recent buyout, which would be one of the largest in the pharmaceutical sector in recent years, say reports.

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