Six years ago Dabur demerged its pharma business from its FMCG operations but then last year Dabur Pharma sold its non oncology portfolio to Alembic and now the Burmans may very soon exit the business altogether. Dabur Pharma is set to sell majority stake to German company Fresenius and post sale the Burmans are likely to become minority shareholders.
The option of selling the entire 65 per cent stake that the Burmans hold in the company is also being considered. At current market price the value of that stake is close to Rs 600 crore but the Burmans are looking at an exit premium and is keen on Rs 900 crore. Dabur Pharma in 2007 sold its non oncology formulations business to Alembic for about Rs 160 crore to focus only on the high margin cancer cure space.
The global oncology generics space, say sources, is the next big frontier with patent expiries worth $8-10 billion expected in the next 2 years. Dabur Pharma too is likely to get two exclusivity opportunities in FY''09-10. No wonder the promoters are seeking such premium from Fresenius, which so far has been the world''s largest provider of dialysis products and services.
The option of selling the entire 65 per cent stake that the Burmans hold in the company is also being considered. At current market price the value of that stake is close to Rs 600 crore but the Burmans are looking at an exit premium and is keen on Rs 900 crore. Dabur Pharma in 2007 sold its non oncology formulations business to Alembic for about Rs 160 crore to focus only on the high margin cancer cure space.
The global oncology generics space, say sources, is the next big frontier with patent expiries worth $8-10 billion expected in the next 2 years. Dabur Pharma too is likely to get two exclusivity opportunities in FY''09-10. No wonder the promoters are seeking such premium from Fresenius, which so far has been the world''s largest provider of dialysis products and services.
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