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Reliance Life Sciences looks for acquisition

Reliance Life Sciences looks for acquisition
PTI
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First Published: Tue, Sep 02 2008. 10 40 AM IST
Updated: Tue, Sep 02 2008. 10 40 AM IST
Mumbai: Reliance Life Sciences has said it is looking for acquisitions in the clinical research space, but high-valuations are hindering its plans.
“We are looking to acquire clinical research companies,” said Reliance Life Sciences Chief Executive Officer K V Subramaniam.
“We are looking at acquisition up to $50 million. But companies that are prepared to sell ask for 10 to 15 times more of EBITDA,” he said.
The company had identified at least three clinical research companies in Europe, but had to back down because of high-valuations.
“Valuation is a big factor while making an acquisition. Most of them did not make sense,” Subramaniam said.
The six-year-old organisation acquired UK-based Genemedix in 2007 for GBP 14.6 million - the Indian company’s first acquisition.
The Mukesh Ambani-owned firm is also taking its own sweet time in acquiring because it does not have the “management bandwidth” to support new acquisition.
The company is not looking for acquisitions at home. “We are better off to build our business organically in India,” he said.
Though, Reliance Life Sciences would like to grow both organically and inorganically, high valuations of target companies has forced it to grow organically, he said.
Reliance Life Sciences bought Genemedix so that it can enter the European bio-pharmaceutical market by leveraging its wide portfolio of therapeutic proteins under development with a complementary product portfolio of the British firm.
The UK company has a facility in Ireland. “We are looking at expanding the facility,” Subramaniam said.
Reliance Life Sciences would use Genemedix as a spring board to launch products in Europe and the US. The company would start launching 40 products from this year onwards, which are in various stages of development.
“The products are being developed in-house. We want to create our own intellectual capital,” he said.
Last year, the company launched five plasma protein products in India.
The company is setting up an active pharmaceutical ingredient facility in Jamnagar. The facility would be ready by the middle of next year.
It is being set up in a Special Economic Zone and would cater mainly to the export market.
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First Published: Tue, Sep 02 2008. 10 40 AM IST