Photo: BloombergWhy Indian pharmaceutical companies are keen on global acquisitions is not hard to fathom. That may explain why Indian companies are interested in buying the European generics business of Sanofi SA. These are sizeable businesses, with Mallinckrodt’s specialty generics business earnings revenue of $860 million in the 12 months to 30 September. That would imply a valuation of 1.5 times sales, although the asking price of $1.2 billion—according to the news report—values it at 1.7 times sales. Now, most big pharmaceutical companies have lean balance-sheets with comfortable debt to equity ratios.

Source: Mint January 15, 2018 02:37 UTC