The U.S. drug shortage is causing hospitals to take desperate measures, including hoarding and rationing medicines before they run out. However, the situation comes as an opportunity to the Indian pharmaceutical company Strides Arcolab Ltd. According to a report by Bloomberg, Pfizer, the world's biggest drug manufacturer, was planning to buy Agila Specialties unit, a division in Strides that makes generic cancer treatments and antibiotics. It is reported that the unit could sell for more than the whole company's market value.
Strides wouldn't be the first Indian drug-maker to be acquired by an international conglomerate. In 2010, Abbott Laboratories bought Mumbai-based Piramal Healthcare Ltd's branded generic-medicine unit for US$3.72 billion, more than Piramal's entire market value of US$2.5 billion. Neither company has confirmed the agreement as of yet. However, one hopes for the best as the trade predicts to be a win-win situation for everyone involved.
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Pfizer Seen Circling Agila with U.S. Drug Shortages
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