Reports: Ranbaxy to Bid for Andrx Pharma Operations

Reports in the Indian business media indicate that the country's leading drug producer, Ranbaxy Laboratories, is to bid for the pharmaceuticals business of US-based Andrx Corporation. The Indian drugmaker has refused to comment on the claims.

Nevertheless, the reports cite well-placed sources who expect Ranbaxy to proceed carefully with an acquisition and believe it would invest substantially if the purchase goes ahead. Ranbaxy already has a marketing partnership with Andrx on its Monopril-HCT treatment, and the US drugmaker recently claimed that it intended to concentrate on developing controlled-release pharmaceuticals. Andrx has also previously stated that it could divest its branded pharmaceuticals business, which lost some US$31mn in the first nine months of 2004.

Andrx currently produces a diverse portfolio of products in leading developed-world therapeutic areas, such as atherosclerotic vascular disease drug Altoprev, expectorant Entex LA and type II diabetes therapy Fortamet. Observers comment that such a purchase would allow Ranbaxy to strengthen its presence on the lucrative US market, amid moves to add value to its product offering by boosting discovery work and developing innovative treatments.