Merck KGaA generics division sees bids

A number of pharmaceutical firms have submitted bids for Merck KGaA’s generic pharmaceuticals business unit, it has been reported, including offers from Israel-based Teva Pharmaceutical Industries, Actavis in Iceland, Mylan Laboratories in the US and India’s Ranbaxy.

Reuters suggests that the bids from Teva, Actavis and Mylan are the strongest according to analysts, while Ranbaxy issued a statement to clarify their position on the potential acquisition.

The company confirmed that it had made a non-binding bid for the business unit, while dismissing reports of an offer in the region of $6 billion (3.12 billion pounds) as “factually incorrect and speculative”.

Malvinder Singh, chief executive officer of Ranbaxy, said: “We are looking to evaluate the asset and are going to be very practical about it.”

He added that the firm was looking to create value for its shareholders rather than being part of a “rat race” for acquisitions within the pharmaceutical industry.

Cipla, another Indian pharmaceutical firm, has joined a private equity consortium which has made a bid, Reuters continued, but the news agency cited industry experts as stating that the absorption of this business unit would be difficult for Indian firms.

Merck announced that it would be exploring the strategic option of divesting its generics business earlier this year.