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Pharmaceuticals Pharmaceuticals

TRACKING INVESTOR INTEREST FLAWED PRODUCTS

‘Pharma & healthcare deals see shifting focus Dr. Reddy’s, Lupin recall products in US

on scalable, global models’ Dr. Reddy’s Laboratories Injection (1,000-mg/100-mL) in year, the US regulator noted. As per the
and Lupin are recalling pro- the US due to labelling mix up, USFDA, a Class I recall pertains to de-
India’s pharma and healthcare sector in acquisitions. Domestic transactions ducts in the US market due to the US drug regulator said. fective products that can cause serious
continue to see rising investor interest with dominated deal volumes with a 68% labelling and manufacturing health problems. In a separate fi ling, the
an increasing shift in focus to scalable and share, while outbound deals led in value- errors, respectively, according “The infusion bag is incor- US regulator said that a US-based subsi-
global models despite a quarterly decline driven by three high-value transactions to the US drug regulator. rectly labelled as Levetiracetam diary of Lupin is recalling an antidepressant
in deal value and volume due to macroeco- (over $100-mn) that contributed 79% in 0.82% Sodium Chloride medication which used in the treatment of
nomic headwinds, according to a report by of the total M&A value. Outbound As per its latest Enforcement Report, Injection 500-mg/100-mL, while the obsessive-compulsive disorder. Naples-
Grant Thornton Bharat, a part of US-based activity hit its highest volume and value US Food and Drug Administration aluminium overwrap packaging correctly based Lupin Pharmaceuticals Inc is
audit, tax, and advisory services fi rm, in six and two years, respectively, as (USFDA) said a US-based subsidiary of identifi es the product as Levetiracetam recalling 2,724 bottles of Clomipramine
Grant Thornton. Data for Jan-Mar (Q1) for The sector’s shift toward regulated Indian pharma players pursued access Dr. Reddy’s is recalling certain batches of in 0.75% Sodium Chloride Injection hydrochloride capsules USP, 25-mg, due
calendar year 2025 shows a 34% year-on- market access, digital innovation, and to regulated markets, specialty product a generic antiepileptic drug in the US mar- 1,000-mg/100-mL,” it added. to “Failed impurities/degradation specifi -
year increase in deal volumes while values scalable consumer health models conti- portfolios, and CDMO/API capabilities, ket. Princeton-based Dr. Reddy’s Labo- cations”, the USFDA said. The company
surged by 326%. nues to drive deal fl ow. according to the report. ratories Inc is recalling 4,010 bags of The company has issued the Class 1 initiated the Class II recall on April 18,
Levetiracetam 0.75 pc in Sodium Chloride nationwide (US) recall on March 13 this it added.
The quarter also saw a rise in high- “While the fundamentals remain The largest M&A deal of the quarter
value deals (over $100-mn), with six robust, macroeconomic pressures and was Intas Pharmaceuticals’ $558-mn FINANCIAL RESULTS
such transactions – double that of the pre- potential US tariff measures may moderate acquisition of Udenyca from Coherus Syngene’s quarter turnover crosses Rs. 1,000-cr
vious quarter – indicating robust investor deal values and volumes in the near term. Biosciences, accounting for nearly 27% of
confi dence and a continued appetite for Nevertheless, the sector presents compe- total sector values and signalling India’s for the fi rst time
scale investments, according to the Grant lling opportunities for both strategic and growing ambitions in the US biosimilars
Thornton Bharat Pharma & Healthcare fi nancial investors looking to tap into space. Sun Pharma’s $355-mn acquisition Biocon’s contract manufacturing ing Director and CEO, the revenue growth supported by new pilot programmes
Dealtracker. India’s evolving healthcare ecosystem,” of Checkpoint Therapeutics further arm, Syngene International, has posted was driven by strong performance in the and the conversion of existing pilots in
said Mr. Kalmath. emphasised ongoing consolidation in on- a 3 percent year-on-year decline in biologics CDMO business, supported by discovery services.”
However, compared with the pre- cology. profi t after tax (PAT) to Rs. 183-crore commercial manufacturing and the addi-
vious quarter, Q1 recorded 71 deals M&A Scene for the Jan-March quarter, down tion of new development projects. “After Looking ahead to FY26, Syngene
amounting to $2.6-bn, refl ecting a slight M&A saw 25 deals totalling $1.5-bn, Overall, the top fi ve M&A deals made from Rs. 189-crore in the same peri- a muted fi rst half, driven by a sectoral expects underlying revenue growth in
5% dip in volumes and a 69% drop in with volumes remaining stable quarter- up 86% of total M&A value, refl ecting a od last year. However, revenue for the downturn in US biotech funding, we are the early teens, refl ecting broad-based
values compared to Q4 2024 calendar, on-quarter, refl ecting sustained appetite continued tilt toward big-ticket, strategic quarter crossed the Rs. 1,000-crore encouraged to see a return to growth in the momentum across research, develop-
according to the report. But despite the for mid-market deals and strategic tuck- acquisitions, according to the report. milestone for the fi rst time, reaching second half of the year,” he said. ment, and manufacturing services. How-
moderation in deal values during the Rs. 1,018-crore. This marks an 8 percent ever, reported revenue growth is likely
fi rst three months, investor interest in Alembic Pharma gets USFDA nod sequential growth and an 11 percent While acknowledging global uncer- to be in the mid-single digits, after
the healthcare and pharmaceutical sector increase on a YoY basis. tainties, he added, “We expect business adjusting for inventory balancing in
remains resilient. for anticonvulsant drug momentum to continue with a pipeline large molecule commercial manufactur-
According to Mr. Peter Bains, Manag- build in both small and large molecules, ing at the client level.
M&A activity contributed 57% of the Alembic Pharmaceuticals said it has drug product (RLD), Tegretol Tablets,
total deal value, while private equity drove received approval from the US health 200-mg, of Novartis Pharmaceuticals Panacea Biotec gets UNICEF order to supply additional
59% of the overall volume, according to regulator to market a generic anticon- Corporation, it added.
the report. “Investor interest in India’s vulsant medication. The company has oral polio vaccines
healthcare and pharmaceutical landscape received approval from the US Food Carbamazepine Tablets USP, 200-mg
remains resilient, with strong momentum and Drug Administration (USFDA) to are indicated for use as an anticonvulsant New Delhi-based Panacea Biotec (Rs. 44-crore) in Q3 CY2025. In ment will be amended accordingly in
in health tech, CDMO/API manufactur- market Carbamazepine tablets (USP, drug. It is also indicated in the treatment has announced that it has bagged an December last year, the company had due course,” the company informed.
ing, single-specialty care platforms and 200-mg) in the US market, the drug fi rm of the pain associated with true trigemi- additional award from United Nations received a UNICEF contract to supply The bOPV is a vaccine that protects
consolidation in multi-specialty hospital,” said in a regulatory fi ling. nal neuralgia. According to IQVIA, International Children’s Emergency 115-million doses of the vaccine in a against poliovirus types 1 and 3. Many
said Mr. Bhanu Prakash Kalmath S J, Carbamazepine tablets USP, 200-mg Fund (UNICEF) for supply of 40- contract worth Rs. 127-crore. countries use the bOPV in their rou-
Partner & Healthcare Services Leader, The approved product is therapeuti- have an estimated market size of $32-mn million doses of its bivalent oral polio tine immunisation schedules and to
Growth at Grant Thornton Bharat. cally equivalent to the reference listed for 12 months ended December 2024. vaccine (bOPV) worth around $5.20-mn “The existing long-term arrange- respond to outbreaks.

154 Chemical Weekly May 6, 2025 Chemical Weekly May 6, 2025 155

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