Medriech Limited, a pharmaceutical manufacturing and marketing major catering to global and domestic customers, is now in dialogue with strategic investors to chart its next growth phase. The company had sought a private equity infusion from Singapore-based Temasek to the tune of US$ 25 million in 2005. Now Temasek is looking to dilute its stake in the company.
“In this regard, we have approached the investment banker NM Rothschild and Sons Ltd which is now working on the investment proposal. The whole process will take some time,” CP Bothra, managing director, Medriech Limited told Pharmabiz.
Commenting on the recent news report which stated that Temasek was seeking to exit from Medreich, Bothra said we can confirm that Temasek is looking at a valuation of our Company with a view to a probable exit. In this regard we have entrusted Rothschild to assist us in this valuation exercise and if Temasek deems fit to help them with their exit plans.
Further, Bothra also clarified about the news report which mentioned about Medriech promoters wanting to sell their stake, and stated that Temasek's stake in the Company is nowhere close to a controlling stake and therefore the report mentioned about Medreich Limited looking to sell control stake is again speculation.
Industry experts viewed that a strategic investor was preferred in the present scenario of the pharma industry as it is seen to represent long term relationship. There is also a strong connection between the quality and decisions of a strategic investor. The pharma industry in India in the wake of the present global context which was looking at new markets is surging ahead to fuel growth prospects with a promising long-term investor.
Medreich which was set up in 1976 is recognised by the global pharma majors for its in-house advanced Formulation Development centre and its competence for novel drug delivery systems. Currently, two top selling drugs of Pfizer and GSK are manufactured at its facility in addition to 64 highest selling products under development.
The company’s seven manufacturing facilities are audited by UK MHRA, Australia TGA, SA MCC, Health Canada, and French AFSSAP, GCC, PIC, besides regulatory agencies of African countries and independent bodies like UNICEF and MSF. Its production plants are dedicated for the production of betalactums, cephalosporin formulations and non-penicillin oral dosage forms. It currently caters to a client base spread across 54 countries. Its customers include GSK, Pfizer, Sanofi Aventis, Mylan and Actavis.